Again we wake up with the crypto market and its capitalization in the red, thanks to a Bitcoin that cannot stop its fall for the moment.
At the time of this writing, the market capitalization stands at $ 914.305 million, which means that it has fallen almost 20% from its recent historical maximum of $ 1.131 Billion.
At the beginning of the session today this figure fell to a minimum of $ 819,318 million, which makes us think how dangerous the fall in which the market is becoming involved is.
Crypto market shakes in fear, capitalization tries to hold support
After several months of a Bitcoin rally that seemed to have no end, we are finally facing a correction, one that continues to drag on as investor sentiment begins to enter the fear zone.
Even though we still don’t see crypto prices in too much trouble, as if by ‘magic’, and as is often the case in markets, while Bitcoin appears to be at a fever pitch before further correction, bad news is starting to arrive, thus promoting a wave of disproportionate fear.
On the verge of a bigger drop?
Janet Yellen, the new Secretary of the Treasury of the United States, assured that cryptocurrencies are being used to finance illicit operations.
From JP Morgan they clarify their narrative about Bitcoin, and now they assure that this is a cyclical asset, so it should not be considered as a good hedge.
On the other hand, a senior executive from the financial services company Guggenheim Partners, indicated that Bitcoin is about to fall towards $ 20,000. He thinks that we will not see a new all-time high in 2021, but he maintains his long-term bullish view.
It seems that everything is lining up for the great correction that has been waiting for begins.
The vibe of my twitter indicates that fear is starting to creep in.
– The Wolf Of All Streets (@scottmelker) January 21, 2021
Despite this, the crypto market is still not in major trouble. The capitalization is trying to maintain the most relevant immediate support, located at $ 864,000 million.
If that level is crossed, sales will quickly increase. This is not the most likely scenario yet, since the prevailing force is bullish, but it would be quite healthy to occur, since it is difficult for the parabolic rally to be sustained in the short term.
Crypto market capitalization. Source: TradingView.
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