The fear was just as good yesterday. The cryptocurrency market took another big hit and the total market cap briefly fell below $1.2 trillion. After the dip, many prices bounced upwards and we are seeing some recovery in the market. Despite this, many prices are still a good 20% to 30% down compared to a week ago.
Whether there is now a bottom and a trend reversal is highly questionable. On the daily charts that may seem to be the picture, but on the weekly charts we seem to be in a downtrend for the time being and we mainly established lower lows yesterday. In many cases, these were lows of prices that we had not seen in months.
This could mean that a further dip is still in the offing in the near future. Still, we see that overall trading volumes continue to increase, indicating investors are buying the dip and whales are continuing to accumulate.
As expected, bitcoin (BTC) dipped below $30,000, its lowest since late January. The price even briefly touched $29,000, but then made a big bounce up again. During the evening, the price hovered between $32,000 and $33,000, but at the beginning of the night bitcoin made another big jump. Bitcoin briefly reached $35,000, but was quickly rejected there and immediately corrected down to $34,000 where the price stayed for the rest of the night.
Rising trading volume suggests that we may soon see a retest of the resistance around $35,000 again, but chances are we haven’t seen the worst of this downtrend yet. A test of support around $28,000, $26,000 or even $24,000 may still be possible. The hash rate, or computing power, of the network also continues to fall due to the strict action in China.
Ethereum (ETH) slid all the way back to $1,730 yesterday, but then made a big bounce up at the same time as bitcoin. During the night there was also a second jump up and since then the ether price has hovered around $2,000. For now, the ether and BTC prices seem to be strongly correlated again.
In the top 10, we see cardano (ADA) and dogecoin (DOGE) recover somewhat faster than the rest. Cardano dipped all the way back to $1.00 yesterday, the lowest since April, but is now back at $1.28. That’s a 28% increase from the dip. Dogecoin (DOGE) crashed the hardest of all crypto market prices yesterday, briefly reaching USD 0.168, but is now at USD 0.217, an increase of almost 30%. Nevertheless, DOGE is still 30% in the red compared to a week ago.
Just outside the top 10, we see Solana (SOL) recovering the strongest. The SOL price dropped to $20.9 yesterday and is now at $30.5, up 45%. Yet SOL is also almost 25% in the red compared to a week ago and that applies to most prices. For Kusama (KSM) that is even 45%.