It looks like crypto investors are having no respite as the bearish sentiment intensifies further. The broader cryptocurrency market is down by another 3.5% today slipping under $2 trillion for the first time since September 2021.
Bitcoin is down 3% falling under its crucial support of $42,500. Thus, it is very much expected that BTC can touch its next support at $40,000. If BTC crashes under this, we are heading to $37,500.
Is $42,500 going to hold as support for #bitcoin? Or are we going to head down to test lower supports at 40k and 37.5K? pic.twitter.com/tF6yXnyKv8
— Lark Davis (@TheCryptoLark) January 6, 2022
On the other hand, the Bitcoin fear and greed index has turned to its lowest since July 2021. This suggests extreme fear in the market and could mean that it could be an opportunity to buy the dips. Well, many analysts in the crypto space have been stating that the current market sell-off is similar to that seen during the summer of September 2021. However, to validate this, BTC needs to show a bounce-back from the current levels thereby seizing the $45K-$50K range once again.
If we want to claim that the current #Bitcoin trend is a tempered version of the summer lull, then we need to see some type of bounce soon. The bounce does not necessarily have to be spectacular, just something to get us back to the prior range (>45k but <$50k). pic.twitter.com/CmAvp8u536
— Benjamin Cowen (@intocryptoverse) January 7, 2022
On the other hand, the heavy protests in Kazakhstan have led to internet shutdowns in the entire country. Knowing the fact that Kazakhstan contributes to 15% of the total hashrate, this is massive. What if the miners in this region start selling their BTC once the internet is resumed? Bitcoin critics like Peter Schiff are already expecting the BTC price to tank to $15,000.
Altcoin Market Crash is Severe Than Bitcoin
The correction in the altcoin space seems to be much severe than what we see today in Bitcoin. The world’s second-largest crypto Ethereum (ETH) is down another 6% with its price crashing under $3250 levels.
Other altcoins are seeing even deeper corrections. The Solana (SOL) price is down another 8% slipping under $140. This is nearly a 40% correction from its all-time high levels.
On the other hand, Terra’s native crypto LUNA slips all the way to $70. This is also a staggering 30% correction from its recent all-time high levels of $100.
The recent crypto market correction follows the correction on Wall Street after the Fed commentary. Will this be the final dip before the market resumes the uptrend once again? Let us know your views.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Source: https://coingape.com/crypto-market-sell-off-intensifies-further-total-crypto-market-cap-slips-under-2-trillion/