Over US$40 billion [AU$61 billion] was wiped off crypto markets in one of the year’s biggest weekend routs. Bitcoin faltered at resistance and was smashed back into the $8,000 zone in what was a largely predicted pullback.
Total crypto market capitalization had reached a multi-month high of $270 billion by Saturday, but unfortunately, the steam had run out of the rally.
The digital asset markets crashed double figures on Sunday as the selloff accelerated, and by Monday morning they were back down at $230 billion.
The digital dust had settled with a market cap at $240 billion, as of this writing, as an entire week’s gains were wiped out.
Bitcoin failed to top $10,000 again and dumped back to the high $8,000 region. It is still up on the month, but the failure to make a new higher high this time means that the bear trend is still intact.
Analysts are looking for the next direction and have identified divergences in the technical indicators.
Analyst on Twitter, CryptoHmaster, notes:
“A bullish divergence on a 4h time frame and a bearish divergence on a 1h time frame (conflicting).”
A bullish divergence on a 4h time frame and a bearish divergence on a 1h time frame (conflicting).
The 4h divergence is stronger because of the longer time frame, but the 1h one is later and appears with more indicators, so in my opinion it prevails. #bitcoin $BTC $BTCUSD pic.twitter.com/r2Yrv70yl0
— CryptoHamster (@CryptoHamsterIO) May 11, 2020
Meanwhile, the BTC halving is now just a matter of hours away and it is unlikely that there will be any massive move to mark the event.
Image courtesy of David McBee/Pexels