#MarketPullback : A Dive into Recent Data detailed tech analysis...
The crypto market has experienced yet nother notable pullback from its recent highs, with significant movements observed across the board. Here's a breakdown based on the latest data:
Bitcoin (BTC) Fluctuations:
Bitcoin, often seen as the bellwether for the crypto market, experienced one of the most significant corrections in its history, dropping from above $100K to the mid-$90K range. This move resulted in over $1.5 billion in liquidations, affecting nearly half a million traders.
Altcoins Taking the Heat:
Altcoins like XRP, Dogecoin (DOGE), and Solana (SOL) also felt the brunt of this market correction. XRP saw a 15% decline, DOGE dropped by 8%, and SOL by 6%, reflecting a broader market sentiment shift.
Market Sentiment and Liquidity:
Sentiment within the market has been described as volatile, with some arguing that the high leverage trading seen before the pullback artificially inflated prices. The liquidation of $1.7 billion in open interest (OI) across altcoins indicates a significant deleveraging event.
Technical Indicators:
The Long/Short-Term Holder Supply Ratio for Bitcoin has dropped to levels not seen in this cycle, suggesting a shift in holding behavior among investors, with fewer participants in a long-term holding strategy.
Realized Profits and Market Health:
Daily realized profits sent to exchanges have significantly cooled off, dropping by 42% from peak levels, indicating that the market might be cooling off after the euphoria of hitting close to all-time highs.
Seller Exhaustion:
According to market analysts, there's an indication of seller exhaustion, particularly with Bitcoin, where locked-in losses for recent traders are high, potentially signaling a return to buying interest soon.
Historical Context:
When compared to previous bull market corrections, the current cycle shows increased resilience, with the largest drawdown being relatively mild at -20.1%. This suggests that the market might be maturing or that the fundamentals supporting this cycle are stronger.
