Bitcoin experienced a rise followed by a drop this week, reverberating around the $96,500 level before the weekend. The Trading View error triggered a black swan event, displaying Bitcoin's dominance dropping to 0%, leading to massive liquidations of longs.
Trading View Bitcoin dominance 'error' plummeted to 0%
Users in the cryptocurrency community reported an anomaly in the Trading View Bitcoin dominance chart, with Bitcoin dropping to $95,000. The error indicated that Bitcoin's share of the entire cryptocurrency market cap had fallen to 0%. This error is said to be the underlying reason for the subconscious trading reaction and has now been corrected.
"This error incorrectly showed Bitcoin's dominance at 0%, causing traders to panic and subsequently leading to market turmoil. This resulted in massive liquidations, with approximately $33 million in Bitcoin longs being liquidated within a few hours," he added.
He stated: "An untimely glitch also occurred on Trading View, causing Bitcoin's dominance indicator to drop to 0%, which may have triggered additional capital outflows. Therefore, panic selling caused by a low liquidity environment due to technical errors, combined with relatively proactive strategic profit-taking a year later, and significant institutional changes with $338 million in Bitcoin ETF outflows before Christmas, are the most likely catalysts for the drop in Bitcoin's price over the past 24 hours."
Bitcoin continues to fluctuate; on the surface, the market seems calm, but in reality, it is brewing, with the strength of bulls and bears within the fluctuation range. Do you understand this?
Market movements, whether up or down, do not depend on one side's strength but rather on the results of multiple factors playing against each other.
Just like the current daily chart of Ethereum.
After those three days of decline, there was panic; in recent days, many people are worried that after the fluctuations, there will be another significant drop.
The reasoning for expecting a continued significant drop is merely because it has fallen before, which is a simplistic and blunt rationale that does not necessarily represent correctness.
Recent market trend observations: The first wave of decline was accompanied by increased trading volume, followed by two additional declines during the fluctuation process, with each decline showing gradually weakening volume, indicating a lack of strength in the downward trend.
After the first wave of decline, a 'hammer candlestick' appeared with increased volume, indicating that the bulls are starting to gain strength.
After the hammer candlestick, the market did not create new lows, and the lows are gradually rising, indicating the weakness of the bears.
Alibaba revealed on Twitter that recent trading in the crypto market has been active, with large investors purchasing over 90 million Dogecoin in just two days, highlighting the growing interest of major participants in the crypto space, especially in Dogecoin.
It was observed that Dogecoin trading activity showed a positive trend on the TD Sequential indicator on the four-hour chart, suggesting that its price is likely to rise.
Currently, Dogecoin's price hovers around $0.31, having slightly declined by 2% in the past 24 hours.
From the recent trading pattern, a green candle with an arrow has appeared, which may be a potential signal for value growth. This key detail has attracted significant attention in the market, with many eyes focused on Dogecoin's next price movement.
The current price chart trend shows that once Dogecoin successfully breaks through these key levels, its subsequent price movement is likely to repeat the historic bullish market, bringing substantial returns to investors.