Bitcoin’s latest plunge has led to a series of nearly $ 312 million of long liquidations, as well as a significant decline in the total market capitalization of digital assets.
Though at this stage, the price of BTC may be nearing $ 45,000, experts say that leaving and fixing below this indicator can provoke another wave of sales and, as a result, the beginning of an extensive new correction in the market.
Even despite the positive dynamics of BTC in recent days, various network data providers have noticed multiple surges in supply growth on exchanges, which in itself is a negative sign, as it signals the intention of some players to take profits by selling.
The liquidation and fall in value have not spared the market of alternative cryptocurrencies. For example, Ethereum (ETH) and Cardano (ADA) lost about 10% of their value.
An important factor preceding the fall was the significant overbuying. Thus, the average long/short ratio was about 98% in favour of the former, signalling a significant overheating across the market. Various indicators such as the Relative Strength Index also show overbought values on larger timeframes.
At the same time, the global picture continues to show that the advantage is still in the buyers’ hands. This is visible by the exchange inflows, which at this stage indicate that there is no growing pressure from sellers in the market, and the current correction is short-term.
We’d like to remind you that the first cryptocurrency is moving within a triangle forming a bullish flag. This figure does not deny the possibility of a correction up to $ 35,000, as it fully accords with this model.
Based on the above, it’s safe to say that globally, Bitcoin remains bullish. And the fluctuations happening right now should be taken not as an alarm hinting at the imminent onset of a crypto-winter but rather as an opportunity to freshen up your portfolio with BTC and various altcoins.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
|BITCOIN (BTCUSD) ₿||$62,747.03||3.01%|
|ETHEREUM (ETHUSD) Ξ||$4,184.91||2.52%|
|IMM. US (REIT)||$2,737.21||0.2%|
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