The bitcoin market has been in a downwards trend since the beginning of 2018, explains MarketWatch. In fact it’s lost around $10 billion dollars worth of value just in this year alone and at one point they were trading below $3K which was a new low for Bitcoin ever recorded.
The “cointelegraph top-5” is a list of the top 5 cryptocurrencies based on market capitalization. The Bitcoin price has been battering longs as liquidations copy May 2021 run to $30K.
Bitcoin (BTC) bulls have taken a beating in recent weeks, and new data indicates exactly how badly.
Glassnode, an on-chain analytics startup, reported in a tweet on Jan. 10 that people craving for BTC had seen a repetition of last May, when BTC/USD started to slide around $30,000.
Long traders don’t seem to be able to “catch the knife.”
According to Glassnode’s Longs Liquidations Dominance indicator, longs accounted for the “majority” of liquidations in the new year.
Given Bitcoin’s general trend since late November, this is anticipated, but the magnitude of the losses puts the last few weeks on pace with May in terms of longs vs. shorts.
Researchers said that “Bitcoin long liquidation dominance has reached 69 percent, the greatest level since the May 2021 deleveraging crisis.”
“This means that the majority of liquidations in futures markets over recent weeks were long traders attempting to catch the knife.”Bitcoin futures long liquidations dominance annotated chart. Source: Glassnode/ Twitter
Looking at the data, the reverse tendency emerged from late July to late November, with shorters falling prey to an unexpected bull run on many occasions.
Lows that are unusual
While protracted liquidation spikes do not usually signal local price bottoms, the need for a quick reversal has long been expressed.
5 things to watch in Bitcoin this week: ‘Most optimistic macro backdrop in 75 years’
Bitcoin is “oversold” by historical standards at present levels, according to Cointelegraph.
“I’m not confident we won’t return these levels if we rebound here, but some short-term comfort would be good,” quant analyst Benjamin Cowen tweeted on Saturday as part of his intraday observations.
“The daily RSI is also technically oversold, and the $40k-$42k range is also theoretically a support level.”
Cowen was commenting on the Crypto Fear & Greed Index, which over the weekend hit rare lows of just 10/100, signifying “extreme fear” among market participants.
$BTC has only seen this oversold indication four times since bottoming out in the depths of the 2018 slump, at 3k, 10k, 4k, and 30k. Shortly after these milestones, #Bitcoin surged by 340 percent, 17 percent, 1585 percent, and 141 percent, respectively. https://t.co/qtlKY9tQzS For more information, go to https://t.co/qtlKY9tQzS pic.twitter.com/oSpb3fTjKX
January 8, 2022 — CRYPTOIRB (@crypto birb)
Such events are usually followed by a price and emotion rebound, but the present lows are noteworthy since the identical price level a year ago was accompanied by the inverse phenomena — 93/100 or “extreme greed.”
The “bitcoin death cross 2022” is a term used to describe when the price of Bitcoin falls below a certain point. The term was popularized by trader @CryptoYoda, who predicted that Bitcoin would die in 2019 or 2020.
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