The cryptocurrency market fell to the lowest level since November 23, 2017, touching $251.8 billion before bouncing back to the current $269 billion. The market price action formed a double bottom, with the first low at $252.7 billion. Bitcoin, the largest cryptocurrency with a market share of 45%, lost 10% in the last 24 hours, falling to $6,726, according to Coinmarketcap data.
The last time the crypto market touched such lows was in November last year, but the market was witnessing a sharp bullish trend at that time.
On Wednesday, CNBC noted that Bitcoin was getting closer to its death cross, which refers to a bearish crossover of the indicators 50-day moving average and the 200-day moving average.
Jim Iuorio of TJM Institutional Services told CNBC:
“When we are talking about bitcoin, I think it's important to remember that we don't have much history to go off of to identify long-term trends. That being said, any time the 50-day crosses the 200-day, it should flash a warning…and when you couple that with the fact that bitcoin has been trending steadily lower since the launch of futures, I think that it is a major negative.”
Even though not everyone agreed with the significance of this technical analysis conclusion, it seems now that the warning was relevant. At the time of writing, Bitcoin is down 15% for the week.
As for other cryptocurrencies, Ethereum has lost 25% for the week and Ripple has shed 19% over the same period, while Litecoin, Bitcoin Cash, and Cardano have dropped by about 23%. The biggest winner in the top 20 is Tron, which has risen by 25% in the last seven days.
The crypto market started this year at around $700 billion, giving signs that it might touch the $1 trillion threshold soon. However, it reached the record high at $826 billion and has lost 69% since then.
This article appeared first on Cryptovest