Just when things were looking positive for 2019, and cryptocurrency markets were making a slow recovery from their December lows, the bears came out in force and smashed them to bits over the past 24 hours.
Over $15 billion has been lost from crypto assets since the same time yesterday resulting in a daily crash of over 11%. There were two separate dumps each occurring over about an hour as the tsunami of bears beat the hell out of Bitcoin and its brethren.
Bitcoin has been facing stiff resistance at the $4,000 level as all indicators suggest that it will not be easy breaking through. Those were proved right yesterday as Bitcoin swiftly plunged back to $3,850, a previous level of support. The pain did not stop there as eight hours later another digital avalanche commenced sending Bitcoin back to $3,660. Any further losses below $3,600, another strong support zone, could see BTC back to its mid-December low of $3,200.
As seen on countless occasions the entire crypto market is hopelessly tied to the movements of Bitcoin. The big purge has hurt Ethereum even more which is currently showing a 13% loss on the day according to Coinmarketcap.com. Ethereum’s pain has been XRP’s gain as it retakes second spot with a slim market cap margin of just $100 million. The Ripple token also dumped 11.5% but it was just enough to edge out Ethereum again.
The entire market bled so much that Tether is climbing back up the chart and challenging Litecoin for seventh spot. The biggest losers at the time of writing are Bitcoin Cash, EOS, Tron and Cardano all plummeting over 16% on the day. Tron is still up over the week though as a series of positive fundamentals have kept TRX buoyant.
There is only one survivor at the moment and that is Verge which has actually made a gain while all those around it have crumbled. XVG is actually showing a 7.5% increase on the day. There are a few updates to wallets and software but not a lot else appears to be driving momentum so it is likely to dump those gains very shortly. Verge has been considered by some as a deadcoin but it still seems to be kicking at the moment.
Despite the latest purge crypto markets appear to be consolidating in a range bound channel between $120 and $140 billion. If a third dump happens things could easily go south very quickly and new lows could be made. As it stands now markets are at their lowest level for 2019.