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.
Global market capitalization remains below $1 trillion for the third day in a row, with a sharp drop in trading volume, especially buying volume. For the past few days, the global market cap was trading with a lower trend line which was broken in the opening day. Hence a major downside is expected to pull the crypto space from 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 sees a significant drop, it could eventually drop by more than 50% to reach levels below $400 billion. Currently, bitcoin has a market cap of over $350 billion across stocks, if the market cap falls as a frame, the price of BTC could drop 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.
