Crytos Crash Again! What is Happening?

We have all seen the headlines in the news, looked at Coinmarketcap and mabey even avoided looking at the carnage in our cryptocurrency portfolios. The cryptocurrency market is headed downward into a sea of red again. What happened, what are the damages, and what comes next.

Bitcoin crashed below $7,500 as I predicted last week. Bitcoin performed as expected, and the market lost a staggering $13 billion. This is the second large cryptocurrency dip in the past 2-months, and we are heading into what is historically the best month for cryprocurrency- November.

We have seen red alot in the past 2-years since the 2017 cryptocurrency bubble. Some of the bearish action we have seen has come from macro and technical movements, but this one was largely technical. Bitcoin missed a key support level of $8,000 and overshot above resistance. As I predicted, Bitcoin ended up below its $7,500 resistance level. Smart money is on the sidelines until Bitcoin can recover solidly above the $7,600 resistance level.

The cryptocurrency bear market is 2-years old, and it has been eventful. We saw $13,000 Bitcoin this year, and have been headed lower lately. What comes next?

The low volume on the Bakkt Bitcoin futures market and a general dip in risk assets has also contributed to Bitcoin's bearish movement. Bitcoin has performed well this year, but the year has been stifling for the altcoin market. Major macro trends including the May 2020 Bitcoin rewards halving event are just over the horizon. I am holding cash until Bitcoin can sustain its price solidly above $7,700 and the chart improves.

Sources:

Picture from Pixabay.

https://coinmarketcap.com/

https://decrypt.co/10699/ethereum-falls-below-160-as-crypto-markets-lose-13-billion-in-market-cap?amp=1

https://www.forbes.com/sites/ktorpey/2019/10/22/these-are-the-only-2-major-crypto-assets-outperforming-the-bitcoin-price-this-year/#5998d0c76d27