- MVIS CryptoCompare Digital Assets 10 Index tool dropped even further to 80% since the all-time high in January.
- Bitcoin is trading at $6,235 after extended declines further below the broken support at $6,300.
Digital assets are now facing what we are referring to as The Great Crypto Crash of 2018. The fall is so great that it deserves to get a mention in the great history books. Most of the assets extended the declines on Wednesday and according to Bloomberg, the MVIS CryptoCompare Digital Assets 10 Index tool dropped even further to 80% since the all-time high in January 2018. Significantly, the crash has even surpassed that of the Nasdaq Composite Index at 78% which measure the rise to the fall following the dot-com bubble experienced in 2,000.
The cryptos are exemplifying the characteristics of the dot-com era. For instance, the investors who staked a lot in the digital assets are currently seeing their investments meltdown unapologetically, more like a reality check.
The crypto boom in 2017 ignited the hopes among investors as they rushed for opportunities to be part of the Bitcoin “gold) mania. At the same time, many believed that the blockchain technology was the global revolution that the world industries had been waiting for. However, the hype seems to be dying down painfully as realities that point towards security concerns, manipulation of the markets and stricter regulations come into play. In addition to that, the slow adoption of the cryptos and the technology by financial gurus in Wall Street is poking in the open wounds.
Bitcoin price technical picture
Ethereum contributed greatly to the fall on Wednesday 12 after plummeting to $167.51 extending the fall this month to 40%. Bitcoin, on the other hand, is trading at $6,235 after extended declines further below the broken support at $6,300. It has corrected lower 0.72% on the day while the trend at the moment is strongly bearish. Bitcoin has also broken below the short-term triangle pattern, which means that it risks testing the support at $6,200 and eventually $6,000 unless a retracement occurs above $6,300 in the near-term. The MACD is ranging in the negative region while the stochastic is at 40%.
BTC/USD 15’ chart
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