A few weeks have passed since our last article, and now everything has changed so much that it becomes truly scary.

The cryptocurrency market has been experiencing a difficult time in recent days, the bitcoin correction has reached a scale of 35%, the second cryptocurrency has sunk by more than 28%, for the rest of the altcoins, it is even scary to talk, since the declines are comparable to panic: -40%, -50%, and even -70% of the value.

The "red candles" show was sponsored by everyone's favorite showman, businessman, and just a good crypto-fraudster Elon Musk, who recently made a number of loud statements that instantly won back the markets in the form of price crashes.

What has been said?

In the beginning, Elon Musk expressed strong displeasure that bitcoin mining is harmful to the environment and Tesla will no longer accept payments in BTC.

After that, Elon Musk criticized bitcoin for centralization. As an example, he cited an incident in Chinese mines that provoked a temporary drop in hash rate.

In principle, the great and powerful Musk is right, but do not forget about the main thing, he is a businessman and does not have to think about the well-being of crypto hamsters.

All of his statements are nothing more than playing on a large financial field. Do you really think that he is so concerned about environmental issues in the bitcoin mining process?

If you go a little deeper, you can see the essence of everything that is happening, this is just a large amount of money that Elon Musk plans to get in the near future.

Tesla has become one of the candidates for credit financing from the US government - the corporation can receive funds for the development of renewable energy sources.

One member of the US Congress suggests that the real reason for criticism towards BTC is precisely the possible cash injections, and Musk may well enter the eco-mining market.

Not only Musk managed to stand out in this big drop in the cryptocurrency market, the founder of the second-largest cryptocurrency Ethereum, Vitalik Buterin, sold a huge number of meme coins (Shiba Inu (SHIB), AKITA (AKITA), and Dogelon Mars (ELON), and transferred the proceeds for charity.

Vitalik's case is sacred, but he pumped the altcoin market, increasing panic in risky assets.

From the above information, the true motive for the decline in the crypto market becomes clear. But what awaits us next?

First, it is worth highlighting the information where Elon Musk spreads a lot of rumors that Tesla and Musk himself are already beginning to sell off bitcoin holding on the balance sheet.

"To clear up rumors, Tesla did not sell bitcoins," Musk wrote on Twitter.

This news locally supported cryptocurrencies, but panic and fear among traders are already on the market, and it is quite difficult to get rid of them.

In this situation, it is worth paying close attention to the information flow, since it sets the pace for the market.

Will crypto winter come in summer?

It's a good question, since now we have only a correction, and the cryptocurrency is still shooting in the market.

What confuses me more than the negativity on the part of Elon Musk is a huge flow of fresh blood on the market, where they shout from every iron about how good it is in the crypto market and how you can make money quickly. Grandfathers, Grandmothers, Grandchildren, Granddaughters, Taxi drivers, Bartenders, Cleaners - all became crypto experts, but this is not a good signal. I advise you to think about fixing the previously received super-profits, since soon the music may end, and the chairs will not be enough for everyone.

Is there hope for further growth?

In principle, there is, but the mechanism for the absorption of crypto hamsters has already been launched, and at any moment the trap can be closed. In simple words, even if the current food comes to naught, we will see further overheating, where, as a result, large players can turn into new blood, which will also eventually lead to a cycle of decline in the crypto market.

What happens on trading charts?

The first cryptocurrency (Bitcoin) has approached the important price area of $40,000/$43,000, which at this time still serves as a support level and leaves hope for a bright future. In order to dispel the fears of the crypto winter, the quotes need to bounce towards the values of $52,000-$60,000. In this scenario, another round of upward interest may arise, which ultimately will lead to the renewal of the local maximum ($64,899) and the formation of a new cycle.

A breakdown of the $40,000/$43,000 area will lead to even greater aggravation and fear among market participants, where the weakening of bitcoin in the direction of $29,000/$31,000 is not excluded.

The second cryptocurrency (Ethereum) is still at the conditional peak of the trend, although it has a 28% correction. The downward cycle has come not so long ago, traders are more confident in saying that the upward move may return to the market, and the coordinates of $5,000 per ETH may come soon.

In simple words, if the negative is easily removed from the horizon, the ether can continue to grow without any extra effort.

Keeping the price above $4,000 can instill confidence in buyers.

A breakdown of the $3,000 mark can increase fear in the market.

General background of the crypto market

Analyzing the total market capitalization of the crypto industry, we see that in a little less than a week the market lost more than $400 billion in capitalization, this is quite a lot, but not critical.

The total market is currently $2.128 trillion.

Bitcoin retains its dominant position in the market at 39.8% of the Total Market, which is equivalent to $850,967,725,791 in numbers, but note how much altcoins are growing, since just recently the dominant share of BTC was more than 50%.

The index of emotions (aka fear and greed) of the crypto market has a very low indicator, which indicates a high excitement among traders. Just last week, the index moved steadily above the 60-point mark, and now it barely exceeds the 20-point mark.

Indicator analysis

Analyzing different sectors of time frames (TF), it can be seen that the indicators of technical instruments on the hourly, daily, and weekly periods signal the sale of BTC, just reflecting to us the stage of correction in the market.

The monthly period, as before, follows an upward trend, signaling a buy.