3 Signs of a Constantly Falling Feeling
Digital assets are facing sharp correction attempts after a rally that some users pointed to a long-term bearish trend. This year, crypto asset prices have climbed the ladder on the back of massive institutional inflows into the market. During this escalating bull cycle, certain events have demarcated a creeping bearish sentiment in the market.
The recent correction in the market triggered major sell-offs that led to liquidations as traders repositioned their assets. There are signs to watch out for a mild and sustained downtrend. The current sentiment is largely considered short-term as bulls eagerly await a price rally following historical trajectories. As Bitcoin and other crypto assets are falling, here are the important points to consider against the downtrend.
Large Transfers to Stock Exchanges
A bull cycle Prices are high because most users are buying assets with limited selling pressure. However, where sell signals are recorded, traders are showing a bearish trend. Large transfers of assets to centralized exchanges are perceived as potential sales, while moving exchanges show signs of long-term holdings. Some of the reasons for this are the ease of selling on exchanges. This year, large amounts of BTC were withdrawn from exchanges during the period when prices were rising.
Frequent Price Adjustments
Since crypto assets are volatile, certain price fluctuations are to be expected. However, when top asset prices fall for consistent periods, a downtrend can occur in the market. This can also occur in sustained downtrends that pull assets well below their highs. This occurred after the 2021 bull season when Bitcoin fell from $62,000 to below $25,000.
Miner reserves
Looking at miner reserves gives an indication of current market conditions to see if there is a bearish trend. When Bitcoin miners sell reserves, it usually means the market is in a bearish trend. This is because in a price correction, BTC miners tend to sell their assets to cover losses from reduced market activity. Miners, on the other hand, will hold onto their assets where there is positive momentum.
Then read on: Market Volatility Pushes Uniswap Outflows near Double-Digit Weekly
✓ Share:
David is a financial news writer with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has a knack for keeping up with breaking news. Keeping up to date with trends, David has reported on a variety of topics including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David enjoys cycling and horseback riding.
The content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
#Signs #Constantly #Falling #Feeling