Cryptocurrency Observes A Deep Plunge With Wiping Off $11 Billion

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While the cryptocurrency ecosystem rejoiced the short-term rally from February 21 to 23, February 24 brought some bad news as the crypto market observed a deep plunge of $11 billion and from $141 billion to $130 billion.

Total Market Capitalization

24 Hour Chart of Crypto Market Valuation, Source: Coinmarketcap.com

As per analysts, the reason behind it could be cited to the inability of Bitcoin to break out of the $4,200 mark, a  crucial resistance level for the dominant cryptocurrency.  A technical analyst, DonAlt stated that alternative cryptocurrencies or small market cap assets are initiating the last phase of retracement. The market might sustain its recovery, in the near-term. The analyst said:

“All the bearish altcoins setups we’ve been discussing on stream for the last week are finally starting to play out. One more leg down should finish their retracements and make them attractive again. Staying hands off due to their weakness paid off. Patience is key.” 

The technical moment of the Crypto Market

Economist Alex Krüger, explained last week that the charts illustrate all indicators of a bottom for Bitcoin at $3,122 and the relatively low volume of the cryptocurrency exchange market shows minimal interest in the market.

He added, that until bitcoin breaks out of the crucial $4,200 resistance level the token remains vulnerable to a drop to the low $3,000 region. DonAlt stated in an exclusive interview with CCN that investors could have been overly excited about breaking the resistance level, which caused the market to retrace. He noted:

I’d argue the main reason why this happened was due to the entire crypto sphere getting overly excited into technical (Weekly & daily) resistance combined with the fact that there’ll probably be a lot of ‘sell the news’ coming the closer we get to the ETH fork.

$BTC 2013-2016 vs 2017-2019 analog comparison. Two optional views:
1. 1-10 correction complete, but retest to come
2. 1-10 correction not done, new lows to follow
Then ??
Or, just dead cat bounce pic.twitter.com/qAaBve87Ug

— Peter Brandt (@PeterLBrandt) February 24, 2019