Is this already the end of the crypto bull market seen in recent days? The question is worth thinking about in view of the trend towards liquidation of assets which is now observed among many investors. A dynamic which is linked to increased market volatility.
Record and worrying increase in crypto sales
The recent turmoil in the crypto market appears to exceed expectations. Indeed, we are witnessing massive sales of assets raising concerns about the end of the uptrend.
According to the latest data, more than $500 million in positions were liquidated recently. A figure which represents 107.14 million dollars, only for bitcoin, the queen of cryptos. This, within 24 hours.
In view of these figures, something obvious seems obvious. Please note that a major liquidation is underway. The total volume of liquidations exceeds half a billion dollars.
This seems to have a direct link to the dynamics around the flagship crypto. Chart data reveals that bitcoin has moved below short-term moving averages, considered support levels. This therefore suggests a weakening of the bullish momentum of the crypto.
In a context of sustained collapse of bitcoin
If, as we pointed out at the start, these sales figures are worrying, it is because against all expectations, bitcoin is collapsing at dizzying speed. Over the past 24 hours, the crypto has lost another around 6% of its price to settle around $64,200.
Now, bitcoin is approaching its 50-day moving average, which is around $56,276. If this level does not hold, then the next major support would be near the 100-day moving average at around $51,819.
Enough to intensify selling pressures, especially since a break below this level would send the signal of a bearish phase potentially destined to continue. This situation is all the more worrying as the market was expected to stabilize at $70,000.
Although the current correction, which could be prolonged, has obviously taken many people by surprise, it still makes sense. It signals a change in the perception of crypto investors, who seem to be moving from optimism to caution, or even pessimism altogether.
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