Which Crypto Will Go Down Now?

Based on the available information, it's challenging to pinpoint exactly which cryptocurrency will decline in the immediate future. However, several indicators suggest that the overall crypto market may experience some downward pressure in the near term:

Market Sentiment

The current market sentiment is described as "Bearish" according to CoinCodex, with the Fear & Greed Index showing a neutral reading of 50. This indicates a lack of strong bullish momentum and potential for price declines across various cryptocurrencies.

Total Market Cap Prediction

CoinCodex estimates that the total crypto market cap will fall by -17.33% in the next year, potentially hitting $1.84 trillion. This broad market decline could affect multiple cryptocurrencies negatively.

Bitcoin (BTC) Outlook

While Bitcoin recently broke above $35,000, it failed to maintain that level, suggesting potential weakness. Some analysts, like Bill Noble from Token Metrics, see a worst-case scenario of Bitcoin falling to $20,000. Veteran trader Peter Brandt thinks it might drop to $28,000.

Ethereum (ETH) Concerns

Ethereum faces additional near-term uncertainty due to its ongoing upgrade process. The recent delay in the next step of its rollout could contribute to price instability.

Altcoin Vulnerability

Historically, altcoins tend to follow Bitcoin's price movements. With Bitcoin showing signs of weakness, smaller cryptocurrencies could be at higher risk of significant price drops.

Technical Analysis

For Ethereum specifically, technical analysis shows bearish signals on both daily and 4-hour charts. The recent break below the $1,650 support level is particularly concerning for ETH's short-term price action.

On-Chain Metrics

The taker buy-sell ratio for Ethereum has been trending in the negative region, indicating bearish sentiment in the futures market. This could lead to further downside for ETH and potentially other altcoins.

Stablecoin Dominance

The increasing dominance of stablecoins in the crypto market (now at 6.93% market share) could indicate that investors are moving funds out of more volatile cryptocurrencies and into safer options, potentially leading to price declines in other coins.

Regulatory Uncertainty

While there's growing mainstream attention to cryptocurrencies, as evidenced by Senator Cynthia Lummis's introduction of the BITCOIN Act of 2024, regulatory uncertainty remains a factor that could contribute to market volatility and potential price declines.

Conclusion

While it's impossible to predict with certainty which specific cryptocurrency will go down now, the overall market indicators suggest a bearish trend. Bitcoin and Ethereum, as market leaders, are showing signs of potential weakness. Smaller altcoins may be at even greater risk of decline due to their typically higher volatility.

Investors should be prepared for potential further drops in crypto prices across the board in the coming weeks or months. It's crucial to review investment strategies, consider risk tolerance, and avoid making impulsive decisions based on short-term price movements.

Remember, the crypto market is highly unpredictable, and while current indicators suggest downward pressure, unexpected events or shifts in market sentiment could quickly change the landscape. Always do thorough research and consider consulting with financial advisors before making any investment decisions in the volatile crypto market.