BTC has crashed. With it has crashed the entire crypto market. But no need to panic.
After weeks of massive gains, the party has come to a stop. In the last 24 hours, the market has crashed. Bitcoin ( BTC), Ethereum (ETH) and Ripple’s XRP are some of the hardest hit.
The total market cap has dropped below $300B after climbing above this earlier in the week.
The bulls have failed to sustain the bullish momentum from the last couple of weeks. This has welcomed back the bears and they can have a run at it and test previous supports. For BTC, the asset is hanging by a thread on the $10K position.
This psychological position has played a vital role in the past, dictating BTC coming trend.
BTC Needs To Remain Above $10K
Above $10K, BTC is considered bullish and FOMO drives prices up. Below, BTC is fairly bearish. When it broke above it a few weeks ago, many believed that it would go on to test 2019’s highs of $14K.
There has however been major resistance around the $10,400 position.
Below $10K remains a great position to buy for investors. Bulls will be accumulating. And heavily. In a few weeks, the BTC block rewarding will be slashed.
With the rewarding, BTC will need to be above $15K to remain profitable. Miners are expected to hold back and decrease supply and demand goes up. As PlanB predicted a few days ago, BTC will be well above $10K by the halving.
He also affirmed that there will be no price capitulation heading to the halving. He thinks we will not see the $8K levels as some have been suggesting. It is not yet time to panic.
Altseason On Hold
For as long as the market has been rallying, Investors have been ailing the return of the alt season. With the latest crash, there will be some panic. But investors should get a grip. A market retracement is natural, especially after a hard rally. Most coins rallied too fast, too high.
The alt season is clearly back seeing coins like LINK, ETH, BSV have more than doubled in value in the last few weeks.
The drop is an opportunity to reaccumulate and confirm supports before the rally continues.