Crypto market in tumble! Is the next wave of crashes imminent?

Crypto market in tumble! Is the next wave of crashes imminent?

Current developments in the crypto market show a worrying trend: the market has lost around 13% and is now at a crucial support line. Loud BeInCrypto The market has reached the 50-day EMA and the 0.382 Fibonacci support at around $3.71 trillion. This support could represent an important turning point, especially after a previous bullish bounce, which was however followed by a bearish rejection at the Golden Ratio resistance at around $4 trillion.

Technical analysis presents mixed signals. While the golden crossover of the EMAs indicates a bullish trend, the MACD lines cross bearishly, creating uncertainty. The RSI remains neutral, however the 4-hour chart shows some short-term warning signals, with the RSI in bearish territory and impending bearish crossovers of the MACD lines. If it declines further, the price could break to the golden ratio support at around $3.4 trillion and next to the 50-week EMA support at around $3.1 trillion.

Forecasts and support levels

The current situation can be confirmed by further data from BTCC add to. It was noted that the crypto market cap has doubled since the summer, reaching a peak of $3.38 trillion in November. Stability above the $1.74 trillion golden ratio is crucial for a bull market to continue. Failing this, Fibonacci supports at $2.53 trillion and $2.2 trillion could provide long-term stability.

A first significant support in the current decline is at $3.01 trillion and a crucial level is at $2.77 trillion (50-day EMA). Should the golden ratio support break at $3.4 trillion, the next support at around $2.77 trillion would be the critical level to watch. Bitcoin dominance has also decreased by 13% in the last two weeks and is approaching significant support levels, indicating impending potential for altcoins.

Market opportunities and risks

Despite the volatile conditions, the long-term market forecast remains optimistic. A possible altcoin season could be on the horizon, especially when Bitcoin dominance is declining and positive news for altcoins is circulating. Solana (SOL) is viewed as a promising altcoin, with a potential of $500 by the end of 2024. Analysts recommend diversification in order to best benefit from market movements.

However, the bearish divergence in the weekly chart of the RSI and falling histogram bars in the MACD highlight the necessary precautions for investors. While the market could theoretically still be considered bullish even with a 50% decline, it remains essential to keep a close eye on developments.