Bitcoin has been on a correction wave in the last 48 hours after staying at the $8k level for weeks. So far, the price has crashed just below that price level and analysts say it could go as low as $6,000. As usual, nearly all the cryptocurrencies are on a correction together with BTC. It seems though, that Ethereum will feel the heat more than other altcoins.
According to a market pundit known on twitter as dave the wave, Ethereum could retrace even further to 61% if the BTC decline continues. He adds that Ethereum may be approaching $144 as a bottom in this correction, should BTC actually reach 50% correction.
If BTC is to retrace 50%, it makes sense for ETH to retrace another level to 61%. pic.twitter.com/bbM8onqmNc
— dave the wave (@davthewave) October 18, 2019
He, however, maintained that the drop should not cause a frenzy as the assets have done pretty well in the last several months as proof that they will bounce back.
BTC already has won the title of the best-performing digital asset in 2019 before it crashed slowly from nearly $14,000 to the current price. Ethereum has also followed closely with proportionate price gains while BTC was experiencing bullish moves. The correction, however, cut the expectations of investors short at the time.
How Long Will This Continue?
According to data from cryptocurrency analysis company Skew, BTC is still a long way from a new all-time high and the chance of that happening in 2019 is close to zero. The data indicates that there is only a one percent chance of a new all-time high being reached in 2019 and only 5% by March 2020.
This invariably means that BTC is likely to trade sideways for the rest of the year despite the approaching halving which is scheduled to take place on May 2020. It also means that the possibility of ETH crashing by 61% is higher than many may think as BTC may actually be heading to $6,000.
Although the price crash may be a problem for those already holding the assets, many would consider it an opportunity to acquire cryptocurrencies for a possible bounce.
So far, institutional investors have been calling for a lower price before getting into the market and this is a great chance to take a stance while hoping for a bounce that may take longer than we expect.