How far could the market drop over the next weeks? What is causing this major drop and also, how is going to possible recover after trending downwards so much?
Recently, the resistance mark of 500 billion dollars have been broken for market capitalization, so where is it heading now? Where is the next line of resistance?
The volume is looking healthy again and it would be good if it would get back to 600 billion dollars. On December 22, we had a market cap of 422 billion dollars. That was the last line of support and as you can see, it is still doing a little dive towards it, so if it gets down to $422 billion again, the market will be at its lowest in almost a month
Asia still dominates in crypto trading by volume and accounting for the vast majority of money flowing in and out, you can draw some conclusions about what is going to come in the next three weeks.
Cryptocurrency experts advise traders to hold their positions if they are sitting on a loss. The crypto market will eventually come back up and the money will return to their growing state. The market will presumably be on a bull run from somewhere in the mid-february to march, so if your are holding position, this is a great time to hold it.
If the market drop is over, should you wait or should you buy more position? Taking into consideration the past activity, the market drop is not over yet, and every single day we see more and more cryptocurrencies red. It just needs a little time to recover. This behaviour is commonly seen after holidays, during the holidays, the investors are becoming retail investors and sell everything, and of course the market falls. After waiting a certain time, there will be a huge booming and every cryptocoin will be skyrocketing again.
So, the final question.. Will the market ever recover? Yes, it will.