The crypto space is swinging within a very uncertain environment since the beginning of the current year. The prices of the popular cryptos, no doubt maintained above the crucial support levels but also failed to rise above the pivotal levels. And hence raising some speculations of yet another price slash. Now when the prices of the assets fall, the global crypto space may end up sliding below $1 trillion.
Currently, the global market capitalization has made it above $1.9 trillion as of the Bitcoin price spikes above $42,000. But still, it is hovering in between a symmetrical triangle, swinging very close to the lower support. Despite the buyers remaining pretty dominant, the market cap fails to secure $2 trillion. And hence flashing out some signals of an upcoming descending trend.
One of the popular analysts believes that the entire crypto space will soon bend down to its knees with a massive margin. He foresees a 50% to 70% retracement on the entire crypto market cap, while Bitcoin may undergo a 50% drop. On the other hand, altcoins could also experience a 60% to 70% dump. Moreover, the drastic plunge is expected to happen somewhere during the May 2022 trade.
On the other hand, the BTC traders are trading at significant losses which are further repriced at the lower levels in the past 5.5 months. And hence if the traders sell Bitcoin at a loss, the profit percentage of the asset may be hampered to a larger extent. Yet on an interesting note, the technicals suggest a clear upswing could be imminent. Once the levels are above $2.043 trillion, one can expect safer levels for the crypto space that can keep up the built bullish momentum.
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Source: https://coinpedia.org/bitcoin/crypto-market-may-crash-by-70-dragging-the-global-market-cap-below-1-trillion/