It has been yet another bloody Monday as cryptocurrencies take a dive. The term, bloody Mondays was coined back in 2017 when the market used to start the week dropping to test supports. This would be followed by a gradual increase in the days that followed before ending the week in weekly highs.
This was best demonstrated last week. Bitcoin began the week in the red zone, trading in the $7,500 lows, it quickly gathered momentum mid-week and by Thursday shot to reach highs of $9,400. During the weekend, there was sideways trading with little activity from investors. The new weeks see investors come in with an aim to first confirm support before seeking higher targets.
The drop is also a way for some top coins to retrace after massive rallies last week. One of these is Ethereum. The largest altcoin has in recent days reached highs of $230 in what has been an almost straight rise from lows of $180. It was inevitable that prices would see a drop and confirmation of support before it can revisit set highs.
For Bitcoin, the end of last week’s price action was also warranted of a retracement. After the rejection of the $9,400 leading to a drop to the $8,900 level where the coin has been trading sideways, a further drop that would allow for investors to accumulate was much needed.
Across the market, most coins have lost between 3% and 10%. Despite this, sentiments remain high. The crypto market is currently being led by Bitcoin and Ethereum. Both are still short term and long term bullish. Bitcoin is expected to undergo its third halving in a couple of days and the significance of this event cannot be overstated.
Ethereum, on the other hand, is expected to undergo a major development with the launch of Ethereum 2.0. This is expected to reinstate the project as the king of Dapps following stiff competition in recent years.
Both Bitcoin and Ethereum are set to continue setting the trend and with their respective supports looking strong and their midterm outlook still bullish, the market is not troubled by today’s dip.