The market bloodbath that began on Tuesday has today, Wednesday, stalled. Most of the top cryptocurrencies are showing relative stability after shedding between 4% and 15% in the last 48 hours. As we reported, this has seen the total market cap lose more than $10 billion. The primary reason for the plunge has been unclear thus far with several reasons viewed as potential catalysts as we reported earlier.
Most traders were expecting a move up and the recent plunge has come as a surprise. Now with critical support in play can we expect a move up towards recovery or a further plunge that sees coins bottom similarly to 2018?
Bitcoin Needs To Hold Above $6.5K Or Risk Plunging Below $6K
For Bitcoin, the recent plunge has seen prices fall to around $6,600, a support which the bulls are fighting tooth and nail to protect. The bulls are currently wary of the $6,500 support which if broken could lead to a further plunge below $6,000. Popular Twitter analyst Jacob Canfield believes that Bitcoin is headed for $5,500.
“I think we could see $5,500 personally, as it is the 78.6% from the swing low to swing high, but we may see a bounce or two in between here and there”
As prices continue to pull away from the $7K position, the bulls are further likely to lose the desire to fight back and put prices up. This could mean more control for the bears in the mid-term.
Altcoins Fate In The Hands Of Bitcoin
Yesterday, Altcoins nosedived following in Bitcoin’s step. For most, they lost around 5% to 10% and most are trading below critical support. Ethereum, for example, is trading around $122 with a drop to $120 putting this second-largest cryptocurrency at risk of falling below $100.
XRP, on the other hand, is trading for around $0.18 from around $0.23 earlier on Tuesday. For XRP, there is a risk that the altcoin could drop to the $0.10 region if the plunge continues in the next few days.
Fortunately, these and most other top altcoins have shown stability on Wednesday and are looking to stage a recovery. The next few hours could determine how the year ends and more importantly who will be in control, the bulls or the bears.
The post Crypto Market Bloodbath Stalls With Critical Supports In Play, Revival Or Further Plunge? appeared first on ZyCrypto.