The strength of the crypto space has reduced to a large extent as the intensity of the upswings has depleted heavily. Therefore, the recovery phase does not prevail for a long time, due to which, the bears continue to dominate the markets. While many market participants believe the Q4 trades could be somewhat profitable, the markets are set to drop more than 50% during the same time.
The global market cap continues to hover below $1 trillion for the 3rd consecutive day with a huge drop in the trading volume, specifically buying volume. The global market cap from the past couple of days was trading along the lower trend line which was pierced in the early trading day. Therefore a huge plunge is feared to drag the crypto space by 50% to 80% as predicted by a popular analyst.
The analyst predicted the plunge quite a long time ago, as the market cap was trading within a bearish pattern from the time since the markets began to rise. Now when the trend is approaching the apex of the rising wedge, a steep fall could be imminent.
Therefore, if the market cap witnesses a steep drop, it may eventually land up shedding more than 50% to hit levels below $400 billion. Presently, Bitcoin on the whole shares more than $350 billion market cap, if the market cap plunges as frames, BTC price may shed below $10,000 in the coming days.
In such a case, the markets may require more than a couple of years to recover and get back to normal.