Bitcoin (BTC), Ethereum (ETH), XRP and most other major cryptocurrencies are now in the red today, as around $11 billion was wiped off the total crypto market capitalization in the last 24 hours.

The vast majority of these losses occurred following a flash crash in the market yesterday morning, which saw the total crypto market capitalization go down from $248 billion down to $237 billion in less than an hour.

Right now, the average cryptocurrency is down almost 4.5% in the last day, whereas Bitcoin SV (BSV) is one the few cryptocurrencies defying the global trend after climbing by more than 8.5% in the same timeframe.

As for the cause behind the recent dip, there are currently a handful of theories making the rounds at the moment. Among these, at least one chartist believes that Bitcoin simply hit against a key area of resistance, and after failing to break through, witnessed a strong rejection that sent it plummeting by $700.

On the other hand, this recent dip might simply be a period of cooling off after last week's strong bullish activity, during which many cryptocurrencies made strong gains—breaking out of a six-month descending channel. On TradingView, another analyst says that Bitcoin is testing the channel that it just broke out of.

Bitcoin tests the six month channel it just broke out of
Bitcoin testing the six-month descending channel it just broke out of. Image: TradingView.

That means, as long as the price doesn't head back inside—where the downturn could continue—it should be heading in a new direction. But who can say for sure?