With the end of the holiday period and yesterday’s decline for Bitcoin and cryptocurrencies, the euphoria bubble that has made fans of the sector dream and rejoice. A few glorious weeks were enough to redeem a period of suffering over two years where the prices of Bitcoin and the main big names seemed destined for oblivion.
For many it may seem offensive or a countertrend comment but yesterday’s decline we can define it as a breath of fresh air that brings dreamers of infinite rises back to reality.
In other periods so fast and violent declines that in a few hours have seen a loss of over 30%, would have been dramatically commented. Instead, after a period that recorded the best rally in history for Bitcoin and largely for the main altcoins, the scratch of the Bear can be defined as a moralizing slap.
Still this is not enough to revive the pride of a Bear humiliated by a hibernation that began in September. A decline that brings back the supporters of the rises relentlessly with their feet on the ground, forgetting that a sustainable rise over time needs to build a solid trend with strong supports and not supported by the smoke of the fomo.
Bitcoin, the deepest decline ever
For Bitcoin with a loss of over $ 11,000 in 48 hours equal to -27%, yesterday’s was the deepest decline ever, while Ethereum with a loss of over $ 400 (-32%) in the same period of time , it was a similar but less bloody movement to the one experienced in mid-January 2018 when in just over 48 hours prices plummeted by over $ 510, with a drop of more than 35% from the highs of $ 1,400, which has remained level up to now. absolute inviolate.
Yesterday was the day with the highest trading volume ever. Over 500,000 Bitcoins were traded on the main exchanges, the highest peak since last May, for a value of over 27 billion dollars, neutralizing the previous record of $ 17.2 billion recorded on 7 January. Even for Ethereum yesterday, with a countervalue of almost $ 16 billion, the all-time high was updated, exceeding the previous record of January 4 by $ 1.5 billion.
The day after the great decline the red mark continues to prevail, although not with the same hegemony as yesterday. Among the top 20 capitalized only three tokens above par. Stellar (XLM) stands out, growing by 10%. Yesterday, after testing the former resistance of 20 cents, a halving in value from the highs recorded on January 7 just above 44 cents, prices are trying to return above $ 0.30. Among the big gainers, Theta (+ 4%) and Cardano (+ 1%) move above parity. Looking beyond the 20th position, the best of the day is Nano with a climb of over 25% for the second consecutive day.
Total capitalization remains under $ 950 billion with Bitcoin continuing to strengthen its market share to 69%, confirming that it is the safe haven cryptocurrency after stablecoins during downturns. Ethereum drops to 13%, its lowest level since the beginning of the year, while XRP continues to fluctuate at 1.4%, three decimal places above the lows of the last three years reached last week.
Total Locked Value (TVL) in DeFi recovers above $ 21 billion after losing over $ 2 billion in the past 48 hours. The loss in value of tokens used as collateral affects. However, there is a positive fact. Both Ethereum and Bitcoin users return to migrate, in fact the number of ETH and BTC blocked on decentralized financial protocols increase. The number of tokens is still far from the highs of October but the signal reverses the trend with an impulse that has not been recorded since the beginning of December. Maker remains the leader with just under $ 4 billion, followed by Aave and Uniswap, both of which have over $ 2.5 billion in fixed collateral.
Bitcoin (BTC), rebound to $ 36,000
Yesterday’s decline pushes prices one step away from $ 30,000, yielding more than 27% from the highs of Friday 8 January, a fall that stops on the dynamic bullish trendline that combines the rising lows since mid-December. A confirmation of the importance of the support comes from the rebound which in this first part of the day brings the prices above 36,000 dollars.
As already indicated yesterday, the current phase must be followed with extreme caution since after a sharp decline like the one that ended yesterday, it is physiological to expect a very volatile rebound, as well as the one currently underway.
Under current conditions it is better to continue to observe the tightness or not of the supports. In this case the main support is that of the 30,000. At the moment it is premature to talk about a rise with prices below $ 39,000.
Ethereum (ETH), support at $ 920
The strong bullish run that from the early hours of the year saw ETH prices gain over 85% in less than 10 days did not leave reliable technical reference points. At the moment, in fact, the only reference support coincides with the lows marked yesterday with the drop in the $ 920 area.
Even for Ethereum at that level, after a decrease of over 30%, short-term purchases have returned, which in these hours see prices rise in the $ 1,100 area. Volatility remains very high and also for Ethereum it is necessary to be very cautious before returning to talk about a rise, which technically would have been above 1,200 dollars.