The cryptocurrency market is witnessing its sharpest collapse yet. In the past 7 days, the whole cryptocurrency market lost around USD 700 Billion. Everything started with 3 factors that affected the halt in the buying power, then things got worse because of a selling snowball effect. The market is filled with FUD, and people still seem to have no idea what’s going on. What is happening with the crypto market and is Elon still involved in the Bitcoin Crash?
Bitcoin Price Analysis – Bitcoin broke major support levels
Many people are asking: is the uptrend over? Well so far, we can confirm that the uptrend line broke, and we discussed this in a previous article where we predicted BTC prices to reach USD 42K. This area represented a strong support, which was broken and prices were sent to a low of USD 30K. Prices directly recovered though within an hour, and jumped back to the current price of USD 37,000.
How is Elon Musk related to the Bitcoin Crash?
When Bitcoin made its high rises this year, it was Elon Musk’s tweets that helped fuel this cryptocurrency upwards, driving the whole market with it. Today, the market is crashing after Elon’s tweet again. Coincidence? Well, we think not. If you take a closer look around in figure 2 what time Elon tweeted positively then negatively, we see a clear correlation between the two.
It clearly shows how the market reacted to Elon’s tweets. Not still convinced? Just head over to the Dogecoin chart, compare it to Google trends and see how Dogecoin prices seem to change whenever there’s a tweet from Elon endorsing it. The current price of Bitcoin is a critical one. If prices manage to stay above the price of USD 30K, we can safely assume that the price increase and decrease back to USD 30K level was from the “Elon hype”. We can also conclude that prices stabilized back to their normal levels. If prices fall back below USD 30K, the next support area would be the USD 24K price.
The whole crypto market
In the past 24 hours, a “bloodbath” occurred in the crypto market. ALL cryptos with no exceptions were seen down for the day. In fact, it was expected when BTC, the biggest crypto by market cap was failing. Bitcoin lost 14% so far, while the whole crypto market lost around 25% in value. This lead to an increase in the BTC dominance of about 3% (currently at 43%).
1- Bitcoin (BTC) : – 14%
2- Ether (ETH) : – 20 %
3- Tether (USDT) : 0 %
4- Binance Coin (BNB): – 27 %
5- Cardano (ADA) : – 20 %
6- Dogecoin (DOGE): – 20 %
7- Ripple (XRP) : – 24 %
8- Polkadot (DOT) : – 29 %
9- USD Coin (USDC) : 0 % (Stablecoin)
10- Internet Computer (ICP) : – 28 %
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