From cryptocurrency The market took another major hit last night. The total market cap of crypto first recovered from Friday’s dip yesterday morning to reach $3 trillion, but has fallen to $2.78 trillion this morning, a loss of a whopping $220 billion in a day.
However, this blow is not entirely unexpected. We indicated in previous market updates that there is a good chance of another dip as we saw three weeks ago. The decrease is also accompanied by remarks from Twitter CFO Ned Segal, who indicates that the company will not invest in crypto for the time being. There were no expectations about that either, but may have been a sign for some investors to cash in on some profits. The new infrastructure law in the US may also make the market somewhat uncertain.
Bitcoin
Bitcoin (BTC) first climbed to $66,000 yesterday but started falling sharply in the afternoon. The price initially appeared to find support at $64,000 in the evening, but by midnight the price plummeted significantly. At 5 a.m. this morning, bitcoin topped out at $60,500 and has been hovering around $61,000 in the past hour. This means that the price falls below 21 days moving average (MA) the rather standhield.
As mentioned, this dip is not completely unexpected. We already indicated in previous market updates that the bitcoin price follows a similar pattern as three weeks ago, but that the peaks and troughs are always slightly higher. Then bitcoin dipped to $58,000 and a day later the price was able to recover somewhat. Bitcoin then remained in a consolidation phase for a week before breaking out again into a new one all-time high.
Whether we will see that again now remains to be seen. It is certainly possible for bitcoin to fall even further. If bitcoin does fall through $60,000, it may fall to the 50-day MA around $58,700, or according to analytics firm IntoTheBlock, perhaps even to 57,400:
Next levels of support for $ BTC.
The IOMAP reveals that #Bitcoin is currently sitting on strong support, with two key levels above $60k in which >2.1m addresses acquired 1.27m BTC.
If Bitcoin breaks below $60k, a retest to $57,400 is likely to happen. pic.twitter.com/nxgkkoZ5ln
— IntoTheBlock (@intotheblock) November 15, 2021
But as Santiment points out, also an analysis company, the dip is again bought right away. That’s a bullish sign for the course:
???? The #dip down to $60.6k is the lowest #Bitcoin has been valued in nine days. The -7% slide in the past 24 hours has been met with rising interest from traders to #buythedip. Typically, a bit of crowd fear will be necessary to have prices fully rebound. https://t.co/l6zTl09D8E pic.twitter.com/2Ghd6XpWYP
– Santiment (@santimentfeed) November 16, 2021
Altcoins
Ethereum (ETH) still follows bitcoin, but has fallen faster in the past 24 hours. The price seemed to climb towards $4,800 yesterday, but in the afternoon ether dropped from $4,770 to $4,600 and last night the price plummeted further to $4,300. Currently, ether is hovering around USD 4,330, which is 9% lower than yesterday. Out of the top 10, polkadot (DOT) is the hardest droper today. The DOT price reached $47 yesterday, then dropped to $45 and then plummeted to $42, down as much as 10.5%.
In the top 100, however, we have a large number of altcoins that are falling even harder. Non-fungible token (NFT) projects like sandbox (SAND), chiliz (CHZ) and enjin (ENJ) all lose about 11%. Also cosmos (ATOM), dash (DASH), near (NEAR), chainlink (LINK) and kusama (KSM) are all down about 11% this morning. Omg network (OMG) and kadena (KDA) fall even harder, both of which are down 12%. The biggest loser today is crypto.com coin (CRO). CRO rose sharply last week, reaching a new ATH of 0.515 yesterday. Since then, however, the price has fallen by 18.5%.
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