The cryptocurrency market is experiencing a major correction that is not stopping. With more than $500 million in positions liquidated, traders are wondering if this signals the end of the recent bull market.
The cryptocurrency market is experiencing a major correction that is not stopping. With more than $500 million in positions liquidated, traders are wondering if this signals the end of the recent bull market.
Strong liquidation prevails in the market, as indicated by the high number of liquidations. In just a 24-hour period, liquidations have increased: Bitcoin (BTC) has witnessed liquidations of $107.14 million and the total liquidation volume exceeded $500 million.
Bitcoin price behavior
Bitcoin has clearly retreated from recent highs and is currently sitting below the $60,000 mark. On the chart, BTC shows that it has fallen below the short-term moving averages, which normally act as support levels. This could indicate that the bullish momentum has weakened.
It reveals a sharp decline from a high, with the price now approaching the 50-day moving average (around $56,276). If this level does not hold, the next significant support is near the 100-day moving average (around $51,819). A break below this level could lead to greater selling pressure, which could signal a longer bearish phase.
This prolonged correction is unsettling for the market as it indicates that investor sentiment may be shifting from overwhelmingly positive to cautious, if not downright pessimistic. It’s a worrying sign, especially when the market was expected to stabilize after an initial correction around $70,000.
The current severity of volatility has taken many by surprise. As the market goes through this severe correction and faces a possible trend reversal, it is critical that participants remain cautious and, most importantly, as liquid as possible. Focusing on long-term prospects rather than short-term fluctuations could be the most viable strategy amid the unexpected market fluctuations we are witnessing now.
