Why Did the Crypto Market Fall Today? | Credit: Hameem Sarwar
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Key Takeaways
The crypto market just experienced a sudden flash crash.
Altcoins have a more bearish chart relative to the rest of the market
Is the crypto market crash over, or are new lows likely this week?
Today’s sudden flash crash rattled the crypto market, undoing most of the recovery from the weekend bounce.
Altcoins are lagging behind the rest of the market and could break down in the short term.
With that in mind, let’s examine a few charts and see what lies ahead for the market in October.
Crypto Market Crash
The daily time frame shows that the crypto market cap (TOTALCAP) has fallen under a descending resistance trend line since the all-time high of $4.17 trillion on Aug. 14.
During this time, the TOTALCAP bounced at the $3.70 trillion support area (green icons), most recently on Sept. 25.
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Even though TOTALCAP created a massive bearish engulfing candlestick on the day, it has since regained all of its losses, even reaching a close above that candlestick yesterday.
Nevertheless, TOTALCAP failed to break out from the 0.5 Fibonacci retracement resistance level at $3.87 trillion, which implies that the upward movement might still be corrective.
However, the short-term outlook points to a more bullish prediction. The bounce since Sept. 25 is an impulsive movement, evidenced by the five-wave increase (black) and the breakout from the parallel channel.
So, the ongoing crash is just wave A in the crypto market’s A-B-C correction, after which the upward trend will continue to new highs.
Why Are Altcoins Down?
While the crypto market still holds its bullish structure, altcoins paint a different picture.
The Altcoin Market Cap completed a five-wave decline between Sept. 18 and 26.d
Unlike the rest of the crypto market, the altcoin bounce looks corrective, since it is contained inside an ascending parallel channel.
The altcoin market cap has nearly broken down from the channel, while the RSI and MACD are getting rejected by their bullish levels at 50 and 0.
If the count plays out as expected, the ALTCAP will complete wave C at a low of either $1.01 trillion or $956 billion, depending on its proportion with wave A.
Mixed Signs
Overall, the crypto market is at a critical juncture.
The short-term structure shows room for another leg higher, but altcoins look ready to break down.
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.
