The last 24 hours have been dramatic for the crypto market. The bears have taken control and shown their might. Their influence has seen the market wipe out more than $20 Billion in the last 24 hours. Top cryptocurrencies led by Bitcoin have taken big hits going as high as -15%, leading to a massive drop below key support levels.
The bearish trend began with Bitcoin which dropped below $11K earlier yesterday. This spiraled in a couple of hours to see the asset drop below $10K by today’s morning. For Ethereum, the situation has been far worse. After previously resisting the bearish pressure earlier yesterday, the top altcoin and much of the market succumbed when Bitcoin fell below $10,500.
Since Ethereum dropped below $200, the top altcoin has gone on a freefall. At the time of press, the asset has fallen under $180 and is recording a more than 14% drop. Other assets recording massive drops are XRP, Bitcoin Cash, Litecoin, Stellar, and Cardano which are recording drops of more than 10%.
The market needs support. Bitcoin, the trendsetter, needs to find support quickly before the market can wipe out more billions. Bitcoin will be looking to find the bottom at $9,500 before bouncing back above $10K.
However, a bearish scenario could see it go all the way to $9K. The $9K position is a more dangerous one with risk of further damage. For Ethereum, getting back above $180 is the first step before bouncing back above $185 to establish a more bullish sentiment.
What Triggered The Sell-off?
According to some reports, the massive drop was triggered by the Yuan gaining strength. The U.S-China trade war negotiations have been progressing well, easing the pressure on the Yuan. This has then seen the investors who bought Bitcoin as safe-haven cash out leaving the market in turmoil.
Another reason that could have seen the market turn bearish is the delay of more Bitcoin ETFs by the SEC. A few days ago the SEC delayed a decision on two Bitcoin ETF proposals by VanEck, SolidX, and Wilshire Phoenix. This will have certainly disappointed investors.