The market cap of all Cryptos peaked on Jan 7, 2018 at a price of $824 Billion, it now sits at $585 Billion.
Is this a Correction or Crash?
Total Market Cap of all Cryptos reached a peak of $824 Billion on Jan 7 2018.
Jan 16, 2018, the total market cap is at $ 585 Billion, that is a loss of 29% in the last 9 day.
The uptrend that started in November is now broken, we can expect further losses.
The Market Cap of all Cryptos could go to $250B-$300 Billion, with the first stop at $500 Billon or our lower support target at $469B.
Two Possible Trading Scenarios
Scenario 1 – Blue Trading pattern
Taking a closer look at the 3 month chart, there are a couple of possible trading scenarios that could play out. The correction could continue to the next support line at $469 Billion and then move up towards the new downtrend resistance line (red line) at about $650 Billion as show in the chart below
Scenario 2 – Green Trading pattern (Most Likely)
Or we could see the Crypto Market Cap rise to the new overhead resistance line (top red line) at about $650B, before we see the next leg down which could take the market cap to the support at $469 Billion. A new trend channel going down looks to be in place, once reaching the target, the trend can continue sideways in the new trading range.
The bottom line is that we are now in a downtrend and the correction will most likely continue. Because the uptrend line that has been in place since Nov has been broken to the downside, we are in a trend reversal, whether it goes sideways or continues lower is still to be determined, but the fact that the tend is now broken will lead to more selling.
I provide coverage on the cannabis sector and am now actively looking at the CryptoCannabis space.
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