Following the relatively stable period we have seen over the past couple of weeks, the markets have experienced quite a hefty correction. Late on the 18th, the market cap fell to a several week low of around $275 billion. Trade volumes remain relatively thin and other indicators such as search traffic and social signals are either low or falling.
At this point, it is hard to predict which direction we could be headed as these signs could point to a prolonged slump. However, we also never know what positive news could be around the corner that could lead to renewed interest.
After Bitcoin could not break through the resistance to reach $12,000, sentiment took a turn for the worst and the price fell to a several month low of around $7500 on March 18th. However, it quickly recovered back up to $8200 following positive news from the U.S. Congress 2018 Joint Economic Report. Whether this will play out as a dead cat bounce remains to be seen.
Interestingly, Bitcoin has outperformed the majority of top alt coins, with the dominance figure creeping back up to nearly 44%. This is the highest it has been in several months and serves as an indicator that investors turn to ‘less risky’ cryptos during a bear market.
