Chaos in the Crypto Market: Falling to 50% Per Day
The cryptocurrency market is in chaos. The fall of cryptocurrencies in less than a day by 33–50%
We have already written that on the night of May 19th, the rapid fall in the price of Bitcoin began. Other cryptos followed. As a result, in less than 24 hours the price of many assets lost up to 50%.
The minimum wage at CoinMarketCap was $31,663. The fall of the crypto was predicted by many analysts. The main reason is weak hands.
Many investors rushed to make a profit by selling crypto. It happened in the background:
- classic market overheating;
- regulatory bans and restrictions (China, India, Iran, South Korea);
- panic over rising inflation in the US;
- U.S. State Department proceedings against the largest exchange, Binance.
We have already written that in recent days the exchanges turned out to be the largest number of free Bitcoins since January 18, 2021. The rapid sale of BTC continues for the third day. “weak hands” are actively getting rid of cryptocurrency.
This phenomenon is present not only in the environment, but also in the trade of traditional assets. After it, there is usually an upturn that affects the whole market.
Some analysts, like the guys from Crypterium analytics, call the main reason for the current three-day sell-off panic in the market.
In numerous chats of investors and in social networks there is chaos and panic. This led to an increase in sales, the appearance of many Bitcoins on the exchanges, which only made the situation worse.
In their analysis today, they write that the crypto market lost between 30% and 60% in one week. Some altcoins suffered more than Bitcoin, which increased the dominance of BTC.
The crypto price began to decline 10 days ago. At the time of the Analysis conducted by Crypterium, the price of BTC fell below $40,000, but as we know, did not stop there. The minimum was set at $31,663.
It was because of the overheating of the market. The main technical indicators of Bitcoin have long shown overbought cryptocurrency. So when the bulls tried to push the price above $45,000, they didn’t have enough money.
The price of Bitcoin has dropped to $40,000, where it has found little support, the ambassador’s level coincides with the 200-day average moving price of BTC.
A couple of hours cryptocurrency was traded in the channel $39,000-$40,000. However, then there was a break below the average sliding, and the price began to decline rapidly again.
Currently, the price of Bitcoin has consolidated. At the time of writing, the coin is trading at $37,583. We will monitor the further development of the situation and keep you informed.