Hello, dear community!
The activity and crypto market has risen significantly in the last week. Many people came back after a long period of hibernating and open positions. Many altcoins followed Bitcoin. But after such a rapid increase in a short period of time, it is normal to witness correction.
The total crypto market capitalization is 171 billion dollars. This number is really high, comparing to what we so just 1 month ago, but it has dropped from where it was a few days ago – 185 billion dollars. Bitcoin is now trading at the little above $5,000. There is a level of support at $5,000 mark so the price may bounce and go up. But this level has not been tested recently, so it is not obvious whether it is strong support. Even if it fails though, there are many support levels between $4,000 and $5,000 which will not let the price sink much deeper.
Other currencies acted like Bitcoin, and the market looks mostly red. Ethereum dropped by 9%, while XRP lost 7% of its value. LTC and BCH also went through a significant plunge. This isn’t surprising since most coins are tailing BTC.
Will the decrease is quite significant, there are no noticeable reasons to worry. Correction was expected after such increase and there are a lot of support levels below the current price that will not let the bear push the price even lower.