Crypto markets rattled, Bitcoin breaks below $10,000 as altcoins crash

As Bitcoin continues correcting and now is trading below the $10,000 support level, Brandt reaffirmed that the cryptocurrency market could be about to suffer a major plunge from the high of $310 billion in market capitalization to roughly $150 billion, which will mostly affect altcoins.

According to Josh Rager, a technical analyst, an 80 percent correction will be devastating to most crypto assets, but the $8,000 support level could be able to contain the price of Bitcoin from such as severe decline.

Now that Bitcoin appears to have broken below the major support cluster given by the 38.2 percent Fibonacci retracement level and the support trendline that formed since late March, which could have been triggered by a 375 BTC sell order in Bitstamp as Josh Olszewicz explained, it could indeed be heading down to the he 50 percent Fibonacci retracement level.

Due to the longevity of this channel, a candlestick close and an open below it could accelerate the selling pressure behind BTC significantly dropping its price down to at least the 50 and 61.8 percent Fibonacci retracement zone previously described.

To Luke Martin, this corrective phase could indeed be a trading range between $13,000 and $9,700 where Bitcoin could spend the near future trading before a break above or below these levels that could pinpoint where it is heading next.

It remains to be seen whether the 100-twelve-hour moving average is able to hold because a confirmed break below it will take Bitcoin down to the 150 or the 200-twelve-hour moving average, which is sitting at $9,200 and $8,000 respectively.

The most recent bull market that BTC had lasted more than two years and represented 10,000 percent gains from the low of Aug. 25, 2015, when Bitcoin was trading at $198, to the high of $19,760 on Dec. 17, 2018.

After an all-time high was achieved on Jan. 4, 2017, when Bitcoin was valued at $1,180 it dropped 36.50 percent.

A similar pattern happened after the high of Sept. 1 and Nov. 6 that saw Bitcoin drop 40.12 and 30.09 percent, respectively.

Despite Peter Brandt's bold prediction of an 80 percent correction that could take Bitcoin sub $3,000 levels, it seems that at the moment this cryptocurrency could likely retrace to around $8,000, which will represent a 40 percent pullback that based on historic data will help keep the bullish trend healthy.