A massive sell-off experienced in the last 24 hours has seen all major cryptocurrencies slip below key support levels. The same has seen a growing concern emerge among investors who fear that prices will drop to last year’s low. On December 15, bitcoin dropped to $3,122 following a two-week sell-off. Although the rally that followed since was thought to be a corrective one, there’s now growing concern that the crypto winter is not over yet.
The market tilt towards bears in the last two days has seen many opt out, triggering a massive sell-off. In the last 24 hours, bitcoin has dropped below the $3,600 position and is now trading very close to its 2018 lows. The opinion of many is that the leader has bottomed but as always, there’s no telling what might happen during the weekend. One thing to be optimistic about is that the beginning of the week normally sees a flash of green and this might just boost prices.
With the total market cap now standing at a little over $122 billion, over $16 billion has been lost in the last 48 hours.
For Tron (TRX), the coin is still holding up fairly well following its gains at the beginning of the year. But with every drop in the wider market comes mounting pressure for a sell-off. Tron began the year trading for $0.019 which quickly grew to a new year high of $0.032 as of yesterday.
Tron was yesterday performing exceptionally well, recording substantial gains in a day that saw most coins undergo a bloodbath. Today, the coin has not been able to build on these gains but has rather succumbed to bearish pressure. A price correction from yesterday’s gains has seen the coin drop to $0.025, a drop of more than 8% at the time of press.
Although there is still no clear reason on what has triggered the massive sell-off around the market, a number of reasons have been pointed out as catalysts. One as such is the recent 51% attack on the Ethereum Classic blockchain. This event is rumored to have shaken investor faith on major projects leading some to opt out. Additionally, before the market drop, there was a lack of movement with many coins unable to break key resistance levels, this attracted bears who are now having a play day with prices.
If the market is to recover, the bulls will have to quickly consolidate and especially for bitcoin find a position above $3,700. The weekend will not be ideal for this, but a rally is imminent.