The worst week for the cryptocurrency market since November 2022 is coming to an end as its capitalization attempts to stay above $1 trillion.
Price trends across the cryptocurrency market remained in a downtrend on Aug. 19 as the total market capitalization tries to stay above $1 trillion.
price has also been as the markets moved into the weekend.
Bitcoin leads crypto market losses
The major down-move this week occurred on Aug. 17 following Elon Musk’s SpaceX its Bitcoin stash as well as several other major reasons.
Bitcoin, which controls nearly 50% of the total cryptocurrency market, reacted negatively to the SpaceX news as the selloff worsened amid a across the crypto derivatives market.
As of Aug. 18, around 176,300 traders had liquidated $1.04 billion worth of contracts,
with long exits making almost 80% of it. In other words, a long squeeze forced traders to sell at a loss to avoid even bigger losses.
Macro risks pressure crypto lower
The decline across the crypto market mirrored losses in the global stock market.
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developed countries, dropped sharply on Aug. 17, as shown in the chart below. This coincided with mounting worriesabout .
The economic slump i that their central bank will weaken the yuan to boost its economy
— something that could negatively impact the crypto market, particularly in the short term.
The last time China devalued the yuan in August 2015, BTC price dropped by 23% in the following two weeks, while the crypto market lost 27% in the same period.
“Head-and-shoulders” hints at more pain
Meanwhile, the crypto market’s technicals aren’t painting a rosy picture either. The current decline is forming a potentiaon the weekly chart, raising anticipations about more losses in 2023.
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below its support line (or neckline). As of Aug. 18, the crypto market tested the H&S neckline for a potential breakdown move.
If the pattern is plays out, its downside target for 2023’s end or early 2024 will be around $751 billion, down over 25% from the current valuation.
On the other hand, the bulls will attempt a recovery toward the 50-week exponential moving average (50-week EMA; the red wave) near $1.113 trillion in 2023.
Holding the important 200-week EMA (the blue wave) level near $1.08 trillion as support will be crucial for the bulls moving forward.
