We have seen fast decline in all cryptocurrencies recently and almost all major and alt coins have been affected but WHY?
First of all the cryptocurrency market is dependent on new investors. They are not like Stock Markets. Let’s look at some examples during pandemic stock markets have fallen sof ast and governments have stepped in to support the economy. We have heard about a lot of Quantitative Easing policies and central banks have injected Money into the economy. They have done this injection by buying corporate bonds and many of these bond sellers are listed in stock markets. So we have seen a fast rebound in these stocks and these led to a rebound in stock markets. But in cryptomarket there is no central bank so people should buy and hold the currencies otherwise the overall market cap will decline and new investors will be shy to get into the market.
For the last couple of weeks the overall market cap is around 2,5 Trillion dollars and it is not moving further. People think that "OK it is time to sell and wait for new dips". And as expected it happened the prices have declined fast and some people have bought the dips. But there are a lot of people who are still waiting for lower levels and as long as they don't invest we will see lower levels. Because the traders in this market are not after %3 or %5 profit they want to make 2x -3x at least. Let us show you some critical levels in the chart.
As you can see rebound is limited compared to losses and if the price doesn't go higher than 54K more declines are on the way. But keep in mind every loss is an advantage and you can make money by selling these coins.
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