According to an independent market analyst, altcoin holders face the risk of facing twice more losses if the Bitcoin price corrects by another 30%.
Crypto Bloodbath, $350 Billion In Market Cap Gone In 48 Hours
Bitcoin and altcoins alike, the entire crypto space takes a beating, losing $350 billion in market cap in just 48 hours.
As a result, the market cap is just around 1.2 trillion today, the lowest it has been since the start of the year.
Bitcoin price dropped below $30k due to the fud caused by China‘s recent crypto crackdown movements. As it usually is the case, the other coins also dipped in response to that.
Altcoins Suffer Double Digit Losses
The crash seems to have hit the alternative coins pretty hard as all the major ones seem to be in the red by double digit percentages.
Here is a chart on Quantify Crypto that shows all the major cryptocurrencies with their daily changes in value as of Tuesday:
The entire crypto market is shook | Source: Cryptocurrency Price Heatmap on Qunatify Crypto
Ethereum (ETH) is down almost 12% to $1753. Only a week ago, ETH was above $2600.
The third largest coin by market cap is Binance Coin (BNB), and it’s floating around $237 right now. Thus, it has fallen off by 23%.
Dogecoin (DOGE) has suffered a loss of 25%, one of the biggest decrease on the map. It has gone down to about $0.17.
Here is a quick rundown of the other major altcoins:
Cardano (-21%), XRP (-23%), Polkadot (-22%), Uniswap (-18%), Bitcoin Cash (-18%), Litecoin (-19%), and ChainLink (-18%).
During the $350 billion market cap drop in the past couple of days, Bitcoin actually gained more dominance with an increase of about 1.28% in the last 24 hours.
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Over the last 7 days, however, BTC has dropped in market cap by about 18%.
Bitcoin Price
Bitcoin’s price has dropped below $30k for the first time since January. This means it has lost over 9% in value over the past 24 hours.
Also, it’s year-to-date return has fallen down to just 3%, when only yesterday it was riding over 10%.
Here is how its market cap has changed over the period of a few months:
BTC's market value fluctuations since February 2021 | Source: Market Cap BTC on TradingView
The latest Bitcoin crash came after China’s continued attempts at shutting down major mining hubs around the country.
As a lot of the Bitcoin hashrate resides on China, the movements of the BTC owned by miners caused a domino effect on the entire market.
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Altcoins followed from there and their value fell as well. The effect on the total global cryptocurrency market cap can be seen in this chart:
The global cryptocurrency market cap is down more than $200 billion in the last 24 hours | Source: TradingView
As per this chart, the market cap fell by more than $400 billion in the past week. Of which, $224 billion was lost in just the past 24 hours.
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The Chart Pattern That Takes Ethereum To $10K
In a flash, Ethereum is back to trading under $3,000 after just weeks ago reaching a high well over $4,000. The wider crypto market correction got the best of ETH and the rest of altcoins especially, and even managed to take down Bitcoin.
However, if past market cycles are any indication of future results, the crash could be the first touch of an ascending trendline that sends the top-ranked altcoin to around $10,000 per ETH.
How DeFi and NFTs Make For A Very Different Bull Run Than ICOs
During the 2017 bull market, both Bitcoin and Ethereum soared as money flowed into the market. Much of that capital trickled its way down to ICOs, which only further fueled the FOMO for ETH. Eventually, they also led to the collapse of the second-ranked cryptocurrency and the start of the Ethereum bear market.
Today things are very different. The most important altcoin in the space carries the rest of the market on its back. Sure that leads to high fees and slower transactions, but that’s because DeFi is such a big deal and so are NFTs.
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These two transcendent technologies are also thanks to Ethereum, and while other chains could take the lead, first-mover advantage is hard to beat. Even though the altcoin collapsed in price recently, the pullback was technical and fundamentals remain plenty bullish.
This could result in the latest selloff being the bottom, and after some gyrating in an ascending pattern, a breakout to $10,000 could be next for ETH.
The ascending triangle would target $10K ETH | Source: ETHUSD on TradingView.com
Analyst: Repeating Triangle Fractal Could Send Ethereum To $10K
The pattern in reference is an ascending triangle pattern, pictured above. The pattern also matches the final consolidation phase of the last bull market, before Ethereum ran to all-time highs and the bear market started.
Related Reading | Here’s Where The Ethereum Rally Could Pause, According To Bitcoin Blueprint
Ether has a lot more going for it this time around, but after a run from $4,000 to $10,000, the market might need a reset – much like the market needed to reset after the rise from $500 to $4,000 over the last year.
The path Ether could take if the fractal confirms | Source: ETHUSD on TradingView.com
According to one trader who also sees the pattern playing out, the target of the structure will be $10,000 per ETH. Adding in an ascending pitchfork channel and some bars from the last breakout projected forward, and the price action would fit.
The path Ethereum takes would only be visible in hindsight, but if accurate, the crypto market has one more leg up before the bull market is over.
Featured image from iStockPhoto, Charts from TradingView.com
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Polygon ($MATIC) Sees 75K Active User Growth
Dapps are continuing to shine recently. As if the chart wasn’t enough to convince you, $MATIC has been a star performer too. Data released this week from DappRadar shows a substantial uptick in Polygon-based decentralized applications. This follows our piece from just a few weeks ago, highlighting $MATIC’s big rally. Let’s recap some of DappRadar’s findings.
The Polygon Network
The data out from DappRadar shows a number of metrics worth calling out with regards to the second-layer solution to Ethereum. It starts with calling out nearly $1B in value flows through their layer 2. Additionally, the materials note that the top twenty Polygon dapps interacted with more than 75,000 active user wallets in just the past week. Finally, in the past month, Polygon-tracked dapps on DappRadar increased from 61 to 93; 46 of those fall in the DeFi and Exchange categories.
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Polygon’s Pitch Point
As the DappRadar materials point out, there are a couple sticking points for Polygon that are main drivers for it’s reason emergence: lower gas fees, and fast transactions. It’s not surprising to see Ethereum gas fees slowing motivations for DeFi applications recently. However, unlike other Ethereum-based ecosystems, $MATIC looks to bring other advantages to the table too. Major pitch points include validation system security, scalability by way of joint PoS consensus and Heimdall architecture, and PoS chain Plasma. Major competitors include Polkadot ($DOT), Cosmos ($ATOM), and Avalanche ($AVAX).
Polygon’s leading dapps in DeFi include QuickSwap, Aave, and ParaSwap – Aave made the expansion over to Polygon in March. QuickSwap reported a 210% user increase last week, and a 240% increase in transactions over the same period.
$MATIC has performed exceptionally well during recent times, where many mainstay cryptocurrency’s have seen pullbacks, in what many describe as “DeFi Summer”.
$MATIC has been performing exceptionally well this year | Source: MATIC-USDT on TradingView.com
Exposure & Expansion
Projects and platforms continue to assist $MATIC with recent growth. Recent partnerships include Decentraland and Maker, and recent platform support includes Coinbase and Binance. Additionally, the team announced Tether (USDT) and USDC integration in September last year. Other unique engagement has taken place in the network as well, such as COVID-19 test verification used by government officials in India.
It’s not just $MATIC seeing rapid growth, either. DeFi is arguably undergoing a radical transformation, as we highlighted recently.
$MATIC launched in 2017 and moved to mainnet by the end of the year; the network went through the Polygon rebrand just a few months ago. $MATIC has now surpassed a $11B market cap and has cracked the top 25 of top coins per market cap, according to CoinGecko, hitting record-high price and coming close to $2 this week.
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Featured image from Pixabay, Charts from TradingView.com
Bitcoin Loses Crucial Support Never Broken During Last Bull Run
With Bitcoin price falling to the low $40,000 range, debate has picked up on if the once trending cryptocurrency’s bull run is now over. There’s no truly telling for sure, however, this time is very different than the last bull market.
Why? Because Bitcoin price just lost a key level that never once saw a weekly close below during the last market cycle. Could this be it for the bullish impulse – long before predictions of $100,000 or more per coin are ever reached?
Crypto Cycle Could Conclude With Key Level Lost From Past Trends
Cryptocurrencies are a highly speculative asset class, regardless if adoption is picking up or not. Sure PayPal is now game, as is Visa and an assortment of others, but the volatile assets have a long road of price discovery ahead.
Although most recent crypto participants only have known “always up” as the direction of the trend, things have recently taken a turn downward.
BTC has lost the middle Bollinger Band or 20-week SMA | Source: BTCUSD on TradingView.com
But is this “the top?” It’s hard to say. One thing for certain, however, is that Bitcoin price has now lost the middle Bollinger Band – also the 20-week SMA.
Passing through the mid-BB in and of itself can be a powerful buy or sell signal.
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However, the fact that during the last bull run Bitcoin weekly never closed below it, it could be a sign that the structure of the bull market has been broken. 
Never once was there a meaningful weekly close below the mid-BB | Source: BTCUSD on TradingView.com
Will Bitcoin Price Snap Back Into A Bull Phase? What To Look For
The Bollinger Bands are a tool created by legendary trader John Bollinger. The tool has a variety of uses, namely measuring the volatility in the price action of assets like Bitcoin.
The technical analysis indicator consists of a 20-session SMA as mentioned, and two standard deviations of that moving average that widen and contract based on volatility.
When they tighten or “squeeze” it can be a sign a massive move is coming. These large moves can begin or continue a trend after a long pause.
The recent peak has more similarities with 2018 and 2019 than 2017 | Source: BTCUSD on TradingView.com
Bitcoin weekly timeframes have tightened during the recent consolidation phase, and a breakout has started. However, the direction appears to be down according to the middle-Bollinger Band. Passing through the middle-band typically results in several touches of the bottom band to find support.
Like last major “tops” the bottom bands widened to extremes, but when they began to tighten back up, the trend was over. A rounding of the top bands also is a sign of the tools suggesting a break in the bull run.
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As for when Bitcoin is ready to turn bullish again, it could be worth waiting for the cryptocurrency to reclaim the middle-BB, which outside of Black Thursday and now, have always been a sign of a bull rally in the making.
With Bitcoin now below the key level, the case for a bear phase, however, is now just as strong.
Featured image from iStockPhotos, Charts from TradingView.com
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The Rise Of Dogecoin: The Good, Bad, And The Ugly
Dogecoin has made crypto investors more money than the likes of Bitcoin and Ethereum since the start of the year. But not everything related to this incredible rise to super stardom has been all glamor and glitz.
While the “joke” coin has proven itself anything but, it still has created a not-so-funny situation for several late-to-the-game mainstream investors. Anyone expecting a dollar per DOGE and bought too close to the top, could now be a sad puppy who’ve lost a lot more than their favorite bone.
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While in line waiting for coffee, two young men no older than their mid-twenties were heard having a conversation loudly. Before ordering their iced lattes, one tells the other about his $250 investment in Dogecoin turned into a cool few grand in his pocket.
These stories aren’t uncommon for mainstream investors who generally have no idea what they’re doing, but heard about the meme coin with an adorable internet pup though TikTok. They clicked buy on Robinhood or other apps, and net themselves a small fortune – yet not enough to catch up to the coin’s frontman Elon Musk.
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Anyone who put money into Dogecoin in early 2021 has far more money than they started with. Unless they were among the latest to join the feeding frenzy among the pack of hardcore fans, then there’s always another side to every coin.
The good, bad, and ugly of the Dogecoin pump all in one chart | Source: DOGEUSD on TradingView.com
Bad Doggy: Dogecoin Latecomers Get Bit, Rally Put To Sleep
The chart above shows the technical rollercoaster that has been the rapid rise of Dogecoin. DOGE has been on a tear, soaring almost 10,000% this year alone.
Anyone who got in before April still has plenty of bones buried out back for a rainy day, however, those late to the feast might want to roll over and play dead.
Related Reading | The Two Signals That Say Dogecoin Holders Are In For “Much Ow”
The initial correction saw an immediately 70% collapse. As of right now, there’s a huge recovery, and Dogecoin is still down more than 40% from all-time high.
But when you’re comparing a measly 40-70% correction against an almost 10,000% rally, this dog could have a lot more to shed.
When assets lose their parabolic advance, they tend to correct by as much as 80% or more. In altcoins like Dogecoin, historically things get far worse, often shaving a full 99% of all-time highs before another recovery attempt is made years down the line.
Those sucked in that don't understand markets can lose a ton of money | Source: Reddit
That could end up leaving investors like the one in the dog house for some time. Take this poor bloke for example, who now has to tell his wife that the allure of DOGE to the moon and $1 Dogecoin was well worth the risk of their life savings.
The moral of this story is that every dog has its day, and Dogecoin’s could now be in the past. If that’s the case, any further gains will be kept on a leash.
Featured image from Pixabay, Charts from TradingView.com
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Dogecoin is the hottest crypto of 2021, taking a major bite out of Bitcoin and Ethereum’s gains this year. These astronomical numbers the altcoin has done this year has sucked in more and more investors. However, anyone who didn’t have their DOGE bags packed previously could be in for some pain instead of “much wow.”
Here’s a closer look at the two sell signals that started showing their teeth as of today.
Every Dog Has Its Day, And It’s Been The Year Of Dogecoin
According to Oxford Languages, the phrase “every dog has its day” refers to the idea that “everyone will have good luck or success at some point in their lives.”
For Dogecoin, the last few days have been the “day” for crypto investors everywhere. Since January 1 of this year, the meme altcoin is up more than 9000% ROI. Not bad for a coin that was created as a “joke.”
Related Reading | Dogecoin Rallies After Elon Musk Commits “Literal Moon” to DOGE Bulls
These returns, however, are nothing to laugh about and some of the best the industry has to offer. Dogecoin has even made kibble out of Bitcoin and Ethereum – the two top cryptocurrencies by market cap.
The Shibu Inu adorned altcoin is beloved across the mainstream, promoted by the likes of Elon Musk, Snoop Dog, and more. The performance has been ‘best in show’ worthy all along, however, two TD 9 sell signals might be putting this rally to sleep for good.
A Duo Of Sell Signals Against The Dollar And Bitcoin Pack A Mean Bite
Dogs are known to get a little over excited, and eat a little too much or play a little too hard. Dogecoin has rallied so hard, it might be time to play dead.
But first, this old dog could roll over, according to the TD Sequential indicator.
An imperfect TD 9 setup has triggered after a sizable rally | Source: DOGEUSD on TradingView.com
Trading against the dollar, a TD 9 sell setup has appeared after an astronomical gain in recent days. The signal could wipe out as much as 80% from the coin’s price tag.
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Against Bitcoin, the signal is also wagging its tail. The TD 9 sell setup on the BTC pair is even stronger of a setup, having been perfected with a higher high on the day.
The signal has been perfected on the Bitcoin trading pair | Source: DOGEBTC on TradingView.com
Because the USD pair isn’t perfect, Dogecoin could still play fetch the returns for a little while longer, keeping owners happy as can be.
This signal might suggest, however, that the adorable little pup could soon turn into a bear.
Featured image from Deposit Photos, Charts from TradingView.com
