On-chain and market data analytics firm CryptoQuant released the latest market analysis suggesting that the recent decline in BTC price has had a devastating impact on long position holders.
The scale of the recent long liquidation is the largest seen in the past year, with a significant impact from a long squeeze, according to the company’s estimates. However, CryptoQuant cautioned that assuming a market rebound immediately after such liquidations is not straightforward. The company pointed out that in the period from August to October 2023, it took several months before prices began to recover.
Therefore, CryptoQuant suggests that investors may find it prudent to adopt a temporarily less aggressive and more conservative approach.
Crypto Market Shows Resilience As Bitcoin And Altcoins See Modest Gains
As of the current update, Bitcoin is trading at $57,684, marking a slight rise of over 0.12% in the past 24 hours. The daily low and high for BTC are recorded at $54,424 and $57,863, respectively. Bitcoin’s dominance has decreased by 0.15% to 53.70% today, indicating a slower performance in the altcoin sector.
The cryptocurrency’s market capitalization currently stands at $1.13 trillion. The recent rise in price may be attributed to additional BTC acquisitions by Japan’s Metaplanet.
Simultaneously, the prices of cryptocurrencies like Ethereum (ETH), Solana (SOL), and XRP, along with the broader market, have followed a similar trend to Bitcoin, showcasing signs of recovery from recent bearish market momentum.
Ethereum is currently trading at $3,069, marking a gain of over 1.77% over the past 24 hours. The daily low and high for ETH are recorded at $2,830 and $3,068, respectively. There is anticipation of potential price increases as spot Ethereum exchange-traded funds (ETFs) prepare for launch. Additionally, Ethereum scarcity has risen, evidenced by on-chain data showing ETH accumulations surpassing those of BTC.
The total cryptocurrency market capitalization has increased by 0.37% to reach $2.12 trillion. Meanwhile, the total trading volume across the cryptocurrency market has surged by 33.93% compared to yesterday, amounting to $73.69 billion, according to data from CoinMarketCap.
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