In recent times, the cryptocurrency market has been experiencing a significant downturn, with major players like Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB) all showing declining trends. This downturn has prompted traders to adopt a shorting strategy, which could lead to liquidations and a subsequent price rise, marking a possible turning point for those with a bullish perspective.
Santiment, a renowned crypto analytics platform offering deep on-chain and social data insights, recently tweeted about the prevailing trends in the Altcoin market.
🧐 Traders are shorting now as #crypto market caps continue their downturn. When the crowd begins to bet against markets, it increases the likelihood of #liquidations, causing prices to rise. For many #bullish investors out there, this is the signal that many are waiting for. pic.twitter.com/JiKqUBruMn
— Santiment (@santimentfeed) August 16, 2023
Bitcoin, often considered the bellwether of the cryptocurrency market, has recently dropped its price to $28,649, marking a 1.71% decrease in just 24 hours. This decline is particularly noteworthy as it has breached the previously established support level of $29,000. The negative momentum surrounding Bitcoin, coupled with unfavorable technical indicators, suggests that we might witness even lower prices in the near future.
Ethereum, another heavyweight in the crypto arena, hasn’t been spared either. Currently trading at $1,800, it has experienced a 1.30% decrease in value over the last day. The prevailing sentiment in the market is bearish regarding Ethereum, and this trend is expected to persist in the short term.
Binance Coin, or BNB, is also on a downward trajectory. Priced at $231.48, it has seen a 1.61% reduction in the past day. The BNB/USD trading pair is encountering significant resistance at the $236 level. Given the recent bearish correction, it’s anticipated that BNB would continue its bearish trend if this resistance persists.
The bearish sentiment isn’t limited to just these major players. The alternative cryptocurrencies to Bitcoin, known as Altcoins, are also feeling the heat. Notable tokens such as AXS, KAVA, SAND, THOR, VET, and CEL have all registered minor losses. Most of these cryptocurrencies are hovering near their respective support levels, indicating the widespread bearish pressure currently dominating the market.
In conclusion, the crypto market is undoubtedly in a bearish phase, with major coins and altcoins alike facing downward pressures. While traders are increasingly betting against the market, leading to potential liquidations, bullish investors are looking for signs of a rebound. As always, the volatile nature of the cryptocurrency market means that trends could change rapidly, and investors should remain vigilant and informed.
