Crypto correction: new decline of 12% looms – investors beware!

Crypto correction: new decline of 12% looms – investors beware!

On August 16, 2025, the crypto market is showing signs of a significant correction. Loud BeInCrypto The market fell from a total value of $3.94 trillion to $3.56 trillion. The decline had already become apparent as the price fell significantly in the last two days. However, a slight recovery occurred at the 50-day EMA and the .382 Fibonacci support at $3.58 trillion, from where prices rose 17.25% to a new all-time high (ATH) of $4.17 trillion.

However, technical analysis points to various challenges. The Relative Strength Index (RSI) shows bearish divergence while the MACD histogram is declining in a bearish direction and the MACD lines are facing a possible bearish crossover. Despite these negative signals, the short- to medium-term trend remains bullish, according to the analysis, supported by a golden crossover of the moving averages in the daily chart.

Market analysis and possible scenarios

On the 4-hour chart, indicators are showing mixed signals while EMAs are signaling a golden crossover. Resistance occurs at the 50-4H EMA at around $3.93 trillion. If the price bullishly breaks through this resistance, only a small correction could occur. The next significant support is expected at $3.69 trillion.

A bearish break of this support could see market values ​​fall to $3.4 trillion to $3.46 trillion, representing a downside potential of 12%. In a worst-case scenario, a sharp correction could drag the market lower to the golden ratio at the 50-week EMA at $3.04 trillion, representing up to 25% downside potential.

Cryptocurrencies and their properties

Cryptocurrencies are digital or virtual currencies based on a distributed ledger technology called blockchain. These currencies use cryptography for security and are decentralized so they can operate independently of a central bank. Unlike traditional currencies, they are not backed by physical goods or governments, but rather their value is determined by supply and demand. Well-known cryptocurrencies include Bitcoin, Ethereum and Litecoin, all of which are generated via a mining process known as Proof of Work (PoW). Ethereum now uses the energy-efficient Proof of Stake (PoS) mechanism to validate transactions.

Furthermore, a decline in Bitcoin dominance could signal the start of an altseason, as Ethereum has gained a remarkable 123% in value compared to Bitcoin in the last five months, 75% since July alone. Bitcoin's share of the market has just bearishly broken through the golden ratio of 60.5%, and experts are predicting a possible decline to as much as 56%.

The coming days could be crucial for the direction of the market. While some indicators point to a possible recovery, uncertainty remains high. It remains to be seen whether the market's bullishness can continue or whether it will come under further pressure. The crypto market faces volatile times as investors wait for the next moves.