Echoing the opinion of Ran Neuner, the host of the CNBC’s Crypto Trader, in the event that the current bearish bias continues for one more month, it will exceed the 420-day correction period witnessed by the digital currency market from 2014 to 2015.
What is causing the extension of the bearish market?
Two years ago, the digital currency witnessed its most productive bullish sentiment. The BTC value skyrocketed from less than 1,000 USD to a whopping 20,000 USD at its best, with other dominant digital currencies, such as ETH and XRP registering 200x profit in the course of a year period.
Before December 2017, when the cryptomarket reached its all-time peak value at more than 800 billion dollars, Vitalik Buterin, the co-founder of Ethereum, proposed that the market’s valuation is not sustainable because of the insufficient progress seen both with base blockchain protocols and dApps.
Since those times, the cryptomarket’s valuation has dropped from 500 billion USD to 119 billion USD, accounting for more than 76.2%. The digital currency market has dropped by a whopping 85% from its all-time peak.
The latest digital currency market is experiencing a bearish sentiment, which most probably will turn out to become the longest correction in the market’s history due to the awareness levels gained by the nascent asset class at its best in the end of 2017.
Lots of the newcoming retail financiers and individual cryptotraders have appeared in the sector at its top performing period and suffered significant losses shortly afterwards.
Vinny Lingham, the chief executive of Civic and a VC financier, stated that it might take some time for financiers to be able to recover psychologically from the bearish cryptomarket, which might contribute to the time period of the corrective action during 2019.
Last November, Lingham pointed, that BTC was going to stay in-between 3,000-5,000 USD for at least 3-6 months, with a lot of purchasing in the near-term around the 3,000 USD level. He stated then that in the event that the community fails to end the bearish bias in the following 3-6 months, the 3,000 USD level could go.
Digital currency analysts believe that 2019 is about to become a dull year for financiers with a low amount of instability and insufficient breakouts over the key support levels for dominant digital currencies.
In the event that the digital currency market stays in the 100-400 billion USD area capitalization-wise by the end of the next month, it will officially become the worst and the longest bearish market in the entire history of the yet nascent, but already rather notorious asset class.