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The recent Bitcoin drop has led to the massive $312 million worth in liquidations, a large drop in total market capitalization and a rise in total losses of market participants. While the average entry on the current market sits around $45,000, Bitcoin's fall below this strong support may lead to the start of a major correction on the market.
"Bloody Monday" was surprising for the market due to positive on-chain data following the recent movements of Bitcoin. But at the same time, various on-chain data providers noticed multiple spikes of supply on exchanges, which are considered a negative sign since funds that appear on the exchange are usually being realized on the market at some point.
The altcoin market has also faced a massive liquidation of volume and a drop in the value of the biggest cryptocurrencies and tokens. Ethereum and Cardano have faced 9 and 10 percent drops, respectively. Previously, the market in general was also moving down with around a 5-8 percent correction on both altcoins and Bitcoin pairs.
Yuri MolchanThe average long/short ratio stayed around 98% for longs, which suggests a major market overheating. Various indicators like the Relative Strength Index have been also showing "overbought" values on long-term timeframes.
Though the market is currently not showing any signs of potential progressive growth, on-chain data still suggests that the bull market is continuing and bears are still not in control of the situation. On-chain indicators like exchange inflows are still suggesting that there is no increasing selling pressure on the market and the current correction is short term.
Denys Serhiichuk
Yuri Molchan
U.Today Editorial Team
Vladislav Sopov
Dan Burgin