Lately, we have seen only market falling. Not a single day of market uptrend movement or at least a bullish sign. Sure, some of the coins and tokens have seen a little uptrend, like TenX, but if we look at the big picture – the market is continuing to fall. What could be the cause for this? And what should we expect in the near future?
Bitcoin falls under $3,500 mark
In a recent post, we also covered a market research article, and we came up with a prediction. If Bitcoin goes under $3,5k, then we should expect it to go to such lows as $2,000. After that, if Bitcoin falls under the $2k mark, we should be expecting it to go as low as $1,1k. These measures are done just by merely locating previous points in the Bitcoin chart when a bull run emerged a.i. the lowest point before a specific uptrend.
Bitcoins previous bull runs
As mentioned above, last year Bitcoin experienced a few severe bull runs, and now it’s returning to some of them. It just passed the 3.5k mark, which indicates that the coin could be going as low as $2k, or even $1,1k. If we dig deeper into the Bitcoin chart, we see, that around the beginning of last year – January to April, Bitcoin accomplished several milestones to which it could be returning. For example, if BTC goes past the $2k and the $1,1k mark, we are left with three more options where the asset could be leveling out. We have $930 as a possible milestone, next $790 and last, but not least we could be going as low as $530 for a single coin. Of course, that sounds depressing even writing it, but we are just pointing out the possibilities. There is a tiny chance that Bitcoin goes to such lows, but it’s always nice to know your choices.
Market cap dropping
The one thing which goes along with the market price is the total market valuation or total market capitalization. This chart looks like the Bitcoin chart because the market still is very volatile and Bitcoin dictates the rules of other cryptocurrencies. Also, that is because Bitcoin accounts for more than a half of the whole cryptocurrency asset class. At the time of writing, the current total market capitalization is $104,916,231,976, judging by coinmarketcap.com. Exactly one month ago, on November 14th, the full market cap was $209,106,319,178. So as you can see, it has dropped by an exact half in just a month. I mean, we are talking $100 billion in a month.
Coins react to good news
Considering that recently almost all crypto assets have seen a continuous downfall, it’s not a rare exception when some of the coins are gaining something as well. For example, at the time of writing, 12 assets sees a slight uptrend today. When in fact, 4 of these assets are stablecoins. At the top is Waves with +18.89% today, because they just released their new features: Smart Assets and Smart Account Trading. TenX PAY token is another asset which is soaring in the past days. They just had a Q&A with their CEO, Julian Hosp, a few days ago, where he announced the new TENX reward token. Also, he revealed new updates to the project and eased everyone’s mind about the upcoming crypto debit cards, which could start shipping during mid-December.
The possible cause
To determine the cause of this market downfall, we have to go back to when it started. This vast, one-year long bear market began at the very beginning of January. The evening of January 7th probably to most investors at that time seemed like any other day. Like any other previous day of +10 to +50% of market gains. But on that day, this market pulled a giant switch, which led to a continuous market downfall. Bitcoin had already entered its bear-run and was lounging at $14k, but the general market cap had reached its peak at $834,117,000,000. Respectively, from that day onwards, the market started to plunge. The cause could be that early investors saw a possible top forming, and began to cash out. And the same happened trough-out the year. People/investors saw the market reaching even more significant lows and fleeing the crypto scene. Possibly, putting their investments into more stable assets.
What to expect next?
The market itself is very unpredictable. It’s hard to tell whether we will continue to dig deeper into the bear market, or could we finally see a sign of a bull-market approaching. One of the symptoms could be a consecutive week of a healthy uptrend. Also, a few regulations could start the switch. However, it’s more likely to see an uptrend forming next year, rather than this year. I think it’s clear that this year we won’t see a similar market situation like last year. The only two things which are clear and 100% justifiable – from this point on, the market can go only up or down.