Veteran Trader Calls 80% Correction Of Current Rally For Total Market Cap; Deeper Retrace for Alts
- Total cap should correct 80%, Most of the damage will occur to altcoins
- Maximum correction will take BTC to $8k, Short term trend is changed
Bitcoin has tumbled down to $9,049 level, a week after hitting $13,000. Down almost 13 percent in the past 24 hours, BTC/USD is currently trading below $9,200 while managing the daily trading volume of $2.75 billion.
However, we have still far down to go, according to traders and analysts.
An 80% Correction?
Veteran trader, Peter Brandt has called out for an 80% correction but not for the Bitcoin price, rather in the total market capitalization. Most of the damage, he says will occur to altcoins.
While the parabola in BTC was subject to different renderings, the parabola in the total market cap chart was loud and clear. Total cap should correct 80%. Most of the damage of decline will occur to altcoins. pic.twitter.com/DssCIL4H0R
— Peter Brandt (@PeterLBrandt) July 16, 2019
About this correction crypto trader and investor, Josh Rager says, this drastic correction is the measured move of over 300 percent of the parabola. There wouldn't be an 80 percent correction from 0 to top, he added.
“This will certainly be a blow to most assets and BTC has strong support in the block shown below near $8000.”
A 40% Correction is Far Likely
The maximum correction for the flagship cryptocurrency, according to Rager is near $8,000 level, that would mean an approximately 40 percent pullback.
A 40 percent pullback is nothing new in the market. During the bull run of 2017, in August and September, we registered a similar 40 percent drop. This time, it will take us to $8k.
The area between $7,991 and $8,208, he says is the high-interest area with daily support and also right below CME future gap.
However, we also have daily support present at $8,770 level.
This further means, altcoins would retrace at a much deeper percentage. Despite already being kicked down, altcoins have far more pain ahead of them.
Bitcoin dominance to 200%
— MOONOVERLORD (@MoonOverlord) July 16, 2019
Short Term Trend is Changed
With the ongoing correction, Rager, a popular analyst, further added the market structure is broken and lower-lows are being set on higher time frames.
No doubt, we will see smaller bounces in between as we saw in the past week, but the trend, for now, seems to have changed in the short term.
As for how long it will continue.
Last bull market saw the average pullback lasting 3 to 5 weeks before continuation. This means Q3 2019, is going to be as expected, that is a dull one.