Crypto Market Showing Signs Of Rebound Despite Evergrande Fears
Evergrande fears extending into crypto, but market showing some strength against global downturn fears.
Covered:
- Market Down Then Up.
- Likelihood Of Rebound Continuing.
Market Down Then Up.
The crypto market is up slightly after falling over 10% in terms of global market cap. As of press time, the global market cap is in the 1.9 trillion range. Just last week the market was well over 2 trillion USD.
Even after the significant dip, the market is still up from its July lows. On July 19th, total global market cap was in the 1.2 trillion range.
July Total Market Cap. Credit: CoinGecko.com
Bitcoin, the world’s largest cryptocurrency, fell as low as $42,500 USD this morning. Overall, it’s down 8% the last 24 hours. BTC is now trading in the 44k range, which is about a 3.5 percent rebound. Stock To Flow Model creator Plan B predicted strong support in the 43k range.
Will August indeed close >$47K???
Btw these are worst case / floor estimates, so do not worry about Sep >$43K, my base case prediction is based on S2F: $100K. I use the floor stuff for options. pic.twitter.com/HGXa5MMqH0— PlanB (@100trillionUSD) August 31, 2021
Bitcoin dominance is up slightly at 0.38%, which gives BTC about 43% of the total market.
Meanwhile, Ethereum is also down 8% in the last 24 hours. It’s trading in the $3,100 range. ETH rose as high as 3,400 on Saturday. The OG smart contract platform is battling some options FUD. But with the continued rise of the NFT market, Ethereum appears poised for a strong October.
Fear And Greed Index for Sept 20th. Credit: https://alternative.me/crypto/fear-and-greed-index/
Overall, market sentiment is neutral. The Fear And Green Index is right at 50. Last week, the index saw a low of 44, with the market showing greater fear than today.
Though, the week is still young. Market expirations coming up on Friday should bring more volatility. The max pain according to Coin Options Track is $44k.
Likelihood Of Rebound Continuing
Recommended: How Bitcoin’s Latest Dump Compares To 2017
Evergrande looms large. Even though a real estate company in China doesn’t have much to do with the burgeoning technology of crypto, cryptocurrencies are still investments. Meaning, investors bleeding money are likely to take profits, or losses, if everything falls with it.
The likelihood of crypto coming out of this unscathed is pretty slim — though, some think the crypto industry might be able to avoid a global market recession. Regardless, the bull market isn’t over if crypto continues to fall alongside the rest of the market.
For one, September, historically, is a bad month for crypto and the stock market. Things tend to rebound in November. As well, markets rebounded very quickly after the March 2020 lows. So, even if we see a massive dip, the potential for a quick turn around is there.
That said, there is some reason for optimism is that China is likely to take over Evergrande to help avoid a collapse.
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Text source: CryptosRus
