Why is the Crypto Market Down Today? | Credit: Veronica Cestari
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Key Takeaways
The crypto market has fallen since its July 22 all-time high.
The Bitcoin (BTC) price has decreased at a similar rate.
Why is the crypto market down today, and when will it reverse?
The recent dip in the crypto market has raised concerns, but the broader uptrend remains intact when viewed relative to the long-term trend.
Despite the sharp decline, technical indicators suggest this is a temporary correction within a larger bullish wave structure.
With that in mind, let’s answer: What’s behind today’s crypto market crash, and when will bulls step back in? Let’s examine a few charts and find out.
Why the Crypto Market is Down
Today’s crypto market crash does not look bad when looking at the price movement since April.
The crypto market reached a new all-time high of $3.34 trillion on July 22 before falling and bouncing.
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Today’s decline is a lower high relative to that, so the actual correction started on July 22.
In all certainty, the crypto market has not yet begun a bearish trend reversal.
However, there are two main paths the short-term correction can take, one more bullish than the other.
The bearish (black) and hidden bearish (orange) divergences in the Relative Strength Index (RSI) perfectly illustrate the indecision of the short-term movement.
The wave count suggests that, despite being down, the crypto market decline is only a short-term occurrence.
More specifically, the price is firmly in a long-term wave three, which has not even reached the length of wave one, hence it is unlikely to be over.
The crypto market’s sub-wave count suggests the price is in corrective wave four, which will develop either into a symmetrical triangle (black) or a parallel channel (blue).
The first option will mean the low is in, and the price will break out. The second one leads to a slightly lower low before a breakout.
In any case, the crypto market will surge to new highs, targeting $4.85 trillion.
Altcoin Market Cap | Credit: Valdrin Tahiri/TradingView
The altcoin market cap has a similar but slightly more bullish chart than the rest of the crypto market.
Altcoins are in wave three, which is already longer than wave one and will likely extend to the 1.61 Fibonacci target before a correction.
Sub-wave four could develop into a symmetrical triangle, leading to a breakout after more consolidation.
Today’s crypto market crash is likely temporary and will lead to another high before a significant correction.
Bitcoin Price Analysis
The Bitcoin price analysis also suggests the decline is temporary and will end soon.
If this is the case, the Bitcoin price will soon begin the most parabolic portion of its upward movement, taking it well above its all-time high of $123,218.
If this bearish scenario transpires, the crypto market will likely complete its more bearish version of a wave four decline, after which the breakout will occur.
It is still possible the Bitcoin price has bottomed, but it is slightly more unlikely because of the duration discrepancy.
Crypto Market Down Temporarily
While the crypto market is currently experiencing a correction, the technical analysis points to a continuation of the long-term bullish trend.
Bitcoin and altcoins are in the midst of a temporary wave four, which typically precedes a strong upward breakout.
If these patterns hold, a surge toward new all-time highs is likely soon.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
