‘Blue Monday’ is known as the most depressing day of the year. Falling periodically on the third Monday of January, the jovial nature of the festive season has subsided and the summer holidays feel a long way away.
This sentiment has been reflected across the cryptocurrency market, with the likes of Bitcoin, Ethereum, and Litecoin all experiencing major sell-offs.
Ethereum is now trading below $165 despite surging to $178 over the weekend, while Bitcoin is clinging on to a level of support in the $8,500 region.
The corrective move to the downside comes after a staggering rally since the turn of the year, which saw Ethereum rise by 43% in just three weeks.
The entire market cap of cryptocurrencies has dropped from $250 billion to $236 billion in the past 48 hours in light of the sell-off, with some analysts suggesting that it could slump towards $224 billion in the coming days.
The critical levels of support for both Bitcoin and Ethereum are at $8,450 and $160 respectively. A move below these levels could be the start of a bearish reversal that could well drive price back to where it was before January 14.
As previously reported by Coin Rivet, Bitcoin’s upcoming halving event is expected to play a crucial role in this year’s cryptocurrency price action.
The halving will see block rewards for Bitcoin miners slashed in half, which should theoretically make it in their interest to drive the price of Bitcoin to the upside in order to sustain the profitability of the industry.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.