Cryptocurrencies Poised For Historic “Double Crash”
As recently as the first week of January, the total market capitalization of the Cryptocurrency sector reached its all time high of about $825 Billion. The talk of the town was the inevitability of reaching $1 Trillion. In the succeeding 3o days, the Cryptocurrency sector lost a staggering 64%, by following to $280 Billion as measured by CoinMarketCap (https://coinmarketcap.com/charts/).
Tuesday morning, the Total Market Capitalization of the Cryptocurrency sector has been once again flirting with the $280 Billion level on the downside, after nearly breaching it a couple of weeks ago. Should it breach $280 billion, the possibility of the first known “Double Crash” is quite possible.
During the rather brief rally in the Dow Jones Industrial Average and Nasdaq on Monday, Cryptocurrencies were down approximately 10%. That was pretty evidence the Stock Market move was nothing more than a brief snapback of too much pessimism or “Wrong Way Corriganism” had been building up and the odds of a crash on Monday were pretty low ( http://markonomics101.com/2018/03/25/wrong-way-corrigans-of-wall-street-come-out-in-droves-to-yell-stock-market-crash/). We’ll discuss stock markets in a separate piece within the next 24 hours, but they remain on SEVERE CRASH WARNING.
Below are charts of Bitcoin, Ethereum and The Total Market Capitalization of the Cryptocurrency sector for the last year. They are ominous, to say the least. But, since we know by now that “Charts are your friends”, let them speak for themselves.
For all a few full of the individual charts, just click on the individual charts:
There are 3 possible targets for the Total Market Capitalization of the Cryptocurrency sector, which appear on the Friendly Chart on the left. Even a best case scenario is $180 Billion, which based on the roughly $300 Billion as of this publication minute and millisecond, would STILL be a 40% loss. The presumed worst case is $70 Billion, which is 75% and definitely qualifies as its own separate crash. If the first Crash ending in February, only required 30 and the second requires 45 days for example, we will have had our first DOUBLE CRASH in history. This makes us more confident that the Dow Jones Industrial Average and Nasdaq will follow suit just as they did in January. So, with Stock Markets Crashing and with Cryptocurrencies also Crashing, will historians refer to this as the first “Double “Double Crash” ? If they do, they better credit Markonomics101 (http://markonomics101.com/), or our charts will be become very unfriendly to them!