Crypto market’s recent happy high gave way to what can only be described as a bloodbath in a dramatic turn of the market over the last 24 hours. Filling many enthusiasts and even some experts with hopes of a bullish outbreak, the cryptocurrencies had been enjoying their time in the green, with the total market cap touching 143 billion dollars. Soon, the market plunged from $141 billion to $130 billion in a matter of minutes as the prices of major coins came tumbling down as well.
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At the time of writing, the market cap has fallen even further than that: reaching $127,091,116,029, well under the 130 billion dollar mark which may have been a saving grace. Given the crypto market rally between 21st and 23rd February had come as a relief to all onlookers, today’s disastrous turn has certainly put the market firmly back to square one. The longest crypto winter is clearly not ready to let go just yet.
Of late, even as the prices had risen, Bitcoin had not quite managed to break past the resistance level of $4200. That, experts believe, may have caused the altcoins to fall again. However, the bloodbath surely does not mean that all hope is lost. Technical analyst DonAlt reportedly had this to say about the fall:
“All the bearish altcoins setups we’ve been discussing on stream for the last week are finally starting to play out. One more leg down should finish their retracements and make them attractive again. Staying hands off due to their weakness paid off. Patience is key.”
In fact, last week, economist Alex Kruger had also expressed a similar opinion, citing the low volume in crypto exchanges. Had Bitcoin broken out of the $4200 range, it perhaps would have managed to stay far away from a drop to the lower $3000s.
The price of Bitcoin itself crashed by about 500 dollars in just about 5 minutes. At the time of writing, it is priced at $3,806.98, registering a fall by 4.81%. The fall may have been triggered by the profit taking that inevitably followed the surge in price, given the shorts and longs have not registered much of a change at the moment.
Ahead of the Constantinople hard fork, Ethereum’s bullish factors seem to have let it down as it has fallen by 8.82% to $138.23. Will the crypto winter continue or will Bitcoin bounce back in style, taking the market forward with it? As DonAlt said, patience seems to be the key right now.