The Tether exchange reserve has been trending higher since early August. It was an indication of rising buying power in the market.#CryptocurrencyTravel
However, it is hard to tell when the crypto market prices would begin to rally, but the metric showed that there is room for expansion.
Liquidity explains why crypto is down
Investors fleeing to stablecoins is a good measure of market sentiment. Another way to gauge where prices are likely to go is from the liquidation charts.#BNBChainMemecoins
Since Bitcoin and Ethereum are the largest assets and most major altcoinsâ price performance has a high positive correlation with them, AMBCrypto decided to examine their liquidation heatmaps.#TON
On the 27th of August, Bitcoin plunged through multiple short-term liquidity clusters, quickly reaching the $58k liquidity pool. It has stabilized since then, but liquidity is a key driver of price movements.
Liquidity and market sentiment were the key factors behind why crypto is down. The move caused millions of dollars in liquidations, and the crypto market could consolidate over the next few days.
