Note: This analysis does not attempt to speculate on the market implications of news events. This is a pure analysis of the market data.
The unprecedented rise in the BTC-USD market to near $3,000 even caught many of the more bullish traders by surprise. However, this quick rise in value did not come cheaply: once BTC finally ran out of steam, the market correction not only affected BTC-USD prices, but it was felt throughout the entire crypto-space as entire market cap took a massive plunge from $49B to $36B over the course of three days.
Figure 1: Market Cap Pre–Bitcoin Price Correction
Figure 2: Market Cap Post–Bitcoin Price Correction
Why Did This Massive Price Correction Happen and Where Are We Heading?
There are two ways of viewing the BTC-USD run to near $3,000 levels:
The top can be viewed as the absolute top of the market ($2,948)
The top can viewed as the peak at $2,726.50 with a healthy 127 percent Fibonacci Extension
I’m going to analyze the market from the view of option 2 because I feel this provides a more sober outlook on the direction of the BTC-USD market.
Read more ... source: Bitcoin Magazine
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