Can We Call It A Crypto Crash? Bitcoin Below $40k And Ether Below $3k

[FXMAG]

The crypto market capitalisation fell to 1.83 trillion, losing 7.3% in the past 24 hours. As we had feared, the selloff was triggered by sharply negative sentiment in US equity markets and intensified by the breakdown of critical support levels.

Bitcoin retreated to the $38.8K area. The amplitude of the decline from the peak at the start of the regular session in New York to the bottom at the opening of Asia exceeds 12%. Sellers have proven unbreakable (so far) the upper boundary of the downward price channel that has dominated bitcoin since mid-November.

Another worrying fact is that Bitcoin's share has risen to 40.2% of the crypto's total cap. The implication is that investors are breaking out of altcoins even more sharply, as they are less confident in the ability of smaller coins to withstand the titans' fall.

Without a sharp intraday reversal (chances for this are minimal), we can confidently expect an acceleration of long position liquidation in Bitcoin and further drawdowns. There is nowhere to look for support until the $30-33K area on the chart.

Ether has given up support at $3K, quickly pulling back into the consolidation area of late September, ending up near $2.85K. The intensification of the selloff makes $2K the target of the initial downside wave.

https://www.fxmag.com/crypto/can-we-call-it-a-crypto-crash-bitcoin-...