Crypto drops back into the red after strong Saturday gains

price-going-down

Yesterday gave crypto enthusiasts around the world a much needed boost as most market spend the day in the green. Today, well let’s not sugar-coat it, the bloodbath continues as just about every major cryptocurrency is down as of the time of this post being published. The one shining star over the past 48 hours is Litecoin which has continued to stay in the green while everything else dips back into the red.

Here’s a look at the top ten cryptocurrencies by market cap as it stands right now:

crypto-prices-feb4-2018

(Source – CoinMarketCap.com)

The big questions on everyone’s mind right now is – how low can it go? The reality is, nobody really knows but I think one of the biggest challenges we’re facing right now is the fact that just about every altcoin drops when Bitcoin does, so if Bitcoin is down, it takes the whole market with it.

I think we’ll look back on these times years from now and laugh about the good old days when the entire crypto market was driven by Bitcoin, but for now it looks like that’s the world we’re living in. While you can do all the technical analysis you want on other altcoins, the reality is, if Bitcoin drops like a rock, others are going to follow.

CoinTelegraph shared some interesting insights on Bitcoin’s price movement yesterday:

Bitcoin┬áis in a firm bear grip. It has declined about 55 percent from its high. With the recent fall, the cryptocurrency has retraced close to 78.6 percent of the latest leg of the rally. We find first signs of buying at $8000 levels. (Source – CoinTelegraph.com)

While I completely agree that the bears are in control here, I don’t think that traditional technical analysis makes a lot of sense given the current market conditions. The reality is that stronger forces are in play here than can be described by trading patterns developed for the stock market, which exhibits much more predictable some would dare to say sane, behavior.

That being said, I do think analysis like this will create somewhat of a self-fulfilling prophecy because everyone’s telling crypto traders to buy BTC if it hits $8k so there’s a good chance that buying at $8k will mean booking profits in the short term, but let’s be honest, the market could continue to drop like a rock after that.

Like I said above, I hope we’ll move to a world where the price of every other crypto isn’t so dependent on Bitcoin but for now I think we’ll have to realize, that’s the world we live in.

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