Merten warned that the crypto market would face an important test. If it fails, then the consequence is that the industry's total market capitalization could experience an epic decline.
It is expected that there will be a significant decline in the market. The direction of the correction is projected to reach 85% of the all-time high, which is imminent.
Traders will have to be patient for the time being as the market reaches a potential support level for its US$390 billion market cap.
Rest assured that this drop will help drown out the noise in the altcoin space, and allow investors to seek out new market leaders and trends.
Long-term play requires patience and a willingness to wait for the market to stabilize before making a significant investment.
Previously expressed doubts about Bitcoin's ability to sustain a higher price range than current levels. many argue, Bitcoin may not even be able to “go any higher”.
The initial signal is a risk-on indicator indicating that altcoins like Ethereum are performing poorly against Bitcoin. This suggests that the direction is stronger for Bitcoin than the crypt space as a whole.
The biggest cause for concern is the downward trend in the cumulative volume delta (CVD). This is after two weeks of market order flow, there is more buy side pressure when it comes to market orders than sell side market order pressure.
Some analysts call for caution in their trading strategies and prepare for a potential downside in the market. Not only that, traders should pay close attention to Bitcoin performance, as it is a leading indicator of the wider crypto market.
Bitcoin needs to break the US$30,000 resistance level to signal the end of the current bearish trend. Until then, traders should watch out for a potential downside in the market.
So, what about hive ?