Market Analysis: $7 Billion Slashed From Total Crypto Market Cap, Bitcoin Falls Through Critical $3,500 Support Level, Bitcoin Cash (BCH), Bitcoin SV (BSV), and Tron (TRX) Down Over 10 Percent

January 28, 2019 / by Zachary Mashiach

Bitcoin’s (BTC) $3,500 support level has finally broken after holding strong since Dec. 19. Over the past day, Bitcoin has declined from $3,550 to $3,410, a four percent drop. Bitcoin briefly went as low as $3,360 around midnight EST.

All other major cryptocurrencies have followed Bitcoin into the red today and have actually seen steeper percentage losses than Bitcoin. Ethereum (ETH) is down 8 percent and currently sits at $105. Ethereum (ETH) went as low as $103 earlier today, dangerously close to the psychological support level of $100. The contentious Ethereum (ETH) Constantinople hard fork looming in late February — and the difficulty bomb already going off which is leading to less mining revenue and higher transaction fees — may explain why Ethereum (ETH) has declined relative to Bitcoin (BTC) today. It is quite possible that Ethereum (ETH) will dive below $100 in the near future, it would just take one more bad day of trading.

Bitcoin Cash (BCH), Bitcoin SV (BSV), and Tron (TRX) have each gone down 11 percent today. Bitcoin Cash (BCH) and Bitcoin SV (BSV) have been doing poorly in general since the fork in mid-November. Bitcoin SV (BSV) is now worth $64 and plunging down the CoinMarketCap ranks, while Bitcoin Cash (BCH) is at $110 and close to falling below the $100 level again.

Tron (TRX) has been performing strongly over the past month and a half, and today’s crash may be the result of speculators taking profits just in case the rally has run out of steam. From Dec. 15 through Jan. 10 Tron (TRX) rallied 170 percent, and since then has been caught in sideways volatile trading action.

Ripple (XRP) is down six percent, EOS is down eight percent, Litecoin (LTC) is down seven percent, Stellar (XLM) is down nine percent, Monero (XMR) is down seven percent, IOTA (MIOTA) is down eight percent, Dash (DASH) is down six percent, and Dogecoin (DOGE) is down four percent.

As has often been observed during bad days on the crypto market, Dogecoin (DOGE) is not going down as badly as most of the other major cryptocurrencies. This is perhaps because Dogecoin (DOGE) is not a common choice among speculators and has a strong community.

The total crypto market cap has declined from $119.5 billion to $112.5 billion, a loss of $7 billion or 5.8 percent. The total crypto market cap is still above the bear market low of $100 billion seen during mid-December, but one more particularly bad day on the crypto market could see a retesting of the bear market lows.