Crypto Sell-off Not Done yet But Bitcoin Could See “Another Massive Bull Run” – Weiss Crypto Ratings

Must Read

Eight Things in Crypto You Can’t Afford to Miss This Week

In this roundup, we cover China's market-rattling resistance to Bitcoin, the increasing drumbeat toward crypto regulation, the...

Why the Cloud Industry Needs to Become Greener

According to Energy Post, the Internet will consume 20% of the projected electricity demand...

Your Wallet May Not Be as Secure as You Think; Here’s What To Do

Remember the egregious breach that exposed Ledger’s entire trove of customer data to the public?...
- Advertisement -
Earn Free Bitcoin

The crypto market made recovery on Monday as the world’s leading digital asset climbed to $8,920 and altcoins surged much harder. But today, prices yet again dropped and bitcoin is now hovering around $8,700.

These gains came after Bitcoin lost 16% of its value last week. The sell-off happened the same week the stock market crashed, in the worst week decline since the 2008 financial crisis. However, the correction in the crypto market was “extremely mild” in comparison.

According to Weiss Crypto Ratings’ Juan Villaverde, the retracement made by the cryptocurrencies was actually “right in line with what our timing models had been anticipating all along, even before investors began to worry about a pandemic.”

The Dow Jones Industrial Average had its worst one-day drop ever as well and the US stock market lost trillions of dollars last week but “it was reassuring to see crypto markets so calm and normal.” Cryptos performed very much like any other week, recording a normal correction.

Overall, crypto assets are trading more in line with the traditional safe haven gold that lost 4.5% of its value on Friday, in the worst drop since 2003, than like risk-on assets said Weiss Ratings.

Bitcoin to Put in a Low in mid-March

If we take a look at the Weiss’ crypto Index, it fell by 9.18% while the “supposedly” far more “stable” S&P 500 dropped by about double of this. The index sans bitcoin presented a similar picture, the altcoins were down 11.11%.

Weiss Crypto Ratings’ large-cap crypto index was down only 8.46% while mid-cap crypto index fell 12.85% and the small-cap index went down by 9.33%.

Usually, small caps are the ones that fell much harder but this time they held up relatively well. The fact that they are trading in line with the broad crypto market could mean “the selloff is likely not done yet.”

“It’s only after we see capitulation on the most speculative names that we can confidently call for a bottom,” said Weiss Ratings.

In 2020, we saw altcoins doubling in price, this strength suggests once these cryptocurrencies work off their “temporary overbought conditions,” we would end up experiencing a much larger correction.

“Our timing models indicate an important low, is likely by mid-March,” said Villaverde but after this low we could see yet “another massive bull run for Bitcoin.”

- Advertisement -
- Advertisement -

Latest News

Sunday Market Analysis from Trendtracers

BTCUSDT. First impression is bearish, there seems to be yearly support at around 28k, We’re expecting more...
- Advertisement -Earn Free Bitcoin

Earn Passive Income with Nhash Cloud Mining Services

Cloud mining services are an easy way to earn passive income online. Although...

Afri-X and DigiShares Bring Tokenization to Africa

DigiShares is proud to announce its partnership to deliver the power of tokenization to Africa. DigiShares has licensed its tokenization platform to...

Racing For Heroes selects Gen2 Technologies as a Key Technology Partner

SPARKS, Nev., April 7, 2021 /PRNewswire/ -- Gen2 Technologies Inc. (the "Company") (OTC: MNIZ) is proud to announce that it has been...

Ken The Crypto tells You How to Get the Most out of the 2021 Bull Run

The year 2021 is what people call the "Bitcoin Year", and the reason is self-explanatory. This recent bull-run has brought...