The cryptocurrency market recovered 15% leading into Sunday night, rising to $132 billion overall after a brief dip down to $114 billion.
Bitcoin dropped to the $3,500 range amid the carnage, while Ethereum dropped to $100 – an eighteen month low for the former king of the alts. The recovery bounce carried those coins to $4,100 and $120 respectively.
Technical analysts are quoting $3,500 as a likely fallback point for Bitcoin following its breach on Sunday morning, and while day traders search for gains on volatility, long term holders are hunkering down for a long winter.
At the same time, if social media posts are to be believed, then more people have cashed out this week than during any other in recent memory, except maybe during the ATH at the turn of the year.
All of this adds up to an eventful week in the cryptosphere – one which has drawn a sudden three-fold influx of ‘Bitcoin’ searches, according to Google Trends.
Litecoin (LTC) Leads Recovery Bounce
In the meantime, it’s an old Bitcoin fork, Litecoin (LTC), that led the recovery bounce with an 18% rebound leading into the evening.
LTC climbed from the eighteen-month low of $27.07 up to $31.94, ahead of BTC and the major alts. Around one third of the action came from the LTC/BTC pair, while another third came from USDT trades. Daily volumes are on the rise again and have cleared the $600 million mark – a sum not witnessed since the market plunge earlier in the week.
Charlie Lee’s Accurate Prediction
As it stands, LTC is already down 91% since the ATH, and its price drop over the course of the year recalls a very prescient, and honest, statement by Litecoin creator Charlie Lee from December of 2017. Lee said in a tweet at the time:
“Sorry to spoil the party, but I need to reign in the excitement a bit… Buying LTC is extremely risky. I expect us to have a multi-year bear market like the one we just had where LTC dropped 90% in value ($48 to $4). So if you can’t handle LTC dropping to $20, don’t buy.”
The drop to the $27 mark has proved Lee’s prediction to be pretty accurate thus far, although there’s certainly still room for another 25-30% drop which would carry LTC down to $20 exactly.
Lee may lack the obvious bristling passion of a Roger Ver, or the extroverted media management skills of a Justin Sun, but he has proved to be one of the more level-headed characters in the crypto space stage drama.
His words from December may also explain why he sold his own cache of LTC. He essentially put his money where his mouth was and sold a declining asset, and could now buy back into LTC once more at a nice 91% discount.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.