Blood in the cryptocurrency market
All cryptocurrencies fall
As of 04/14/2021, the sentiment of most cryptocurrency investors is not very good. It is true that on that day Bitcoin reached its historical highs of $ 64,500 apiece. Since then, however, Bitcoin has been practically constantly declining. At the time of writing this article on 04/23/2021, the price for 1 Bitcoin is $ 49,750.
Deep Bitcoin drops and what next?
The recent deeper plunge returns to the standard question “What will happen next?” The rock collapse in recent days was probably one of the deepest in the history of this value, therefore it is not clear what will happen next. On the chart, it does not look very colorful at the moment for Bitcoin enthusiasts. The price has been falling for several days and there is no significant demand at these prices.
The situation on longer, weekly candles, in my opinion, also does not look cheerful and may herald further declines. Therefore, in my subjective opinion, further drops are ahead of us. The possible levels of support at which the rebound will occur are the levels of the Fibonacci retracement from the entire impulse, i.e. around $ 44,700 to the 0.382 retracement. It is a fairly certain downside scenario. A stronger bounce can come from this level. However, the lower retracement levels at 0.5 and 0.61, which are often played out in the cryptocurrency market, may be the levels the chart will be aiming for.
Are we going to experience declines on other cryptocurrencies and tokens as well?
Most of the known and liked cryptocurrencies are also losing value. Most of them with much more dynamics than Bitcoin. The cryptocurrency market is bleeding … Is it just injured or is it dying? As always, I don’t have a definite answer for you. However, I know one thing, at this point it is worth being out of the market and watching. The price of Bitcoin and other popular cryptocurrencies has a large range to decline, so I consider investing at this point to be extremely risky.
Many cryptocurrencies that were gaining in value until recently are now suffering deep drops and corrections of 20-35% in 7 days. These include, for example, Ripple (XRP), Polkadot, Dogecoin, Stellar and Tron. Will such turmoil be able to break this beautiful streak and boom on the market of encrypted digital currencies? Or maybe such a correction will purify the stocks and allow them to return to the proper upward trend. We’ll find out in the days and weeks to come. It is obvious that none of us knows the future, so we are never able to objectively say which way the chart will go. Will it break dynamically upwards or will it keep a temporary downward trend?