3 Warning Signs Indicating Crypto Market is Going to Crash
The post 3 Warning Signs Indicating Crypto Market is Going to Crash appeared on BitcoinEthereumNews.com.
Crypto market seems to be little overheated, some industry leaders say that amidst the ongoing parabolic rally the crypto market crash could happen before the next surge. Historically, there are key indicators that can help predict an impending crypto market crash. Some of these warning signs are already visible, such as the meme coin frenzy, sky-high crypto futures funding rates, and extreme greed among investors. Is Crypto Market Going to Crash? 3 Signals Point to a Correction Market crash can be pretty common in the crypto space, even during bull runs. Keeping an eye on these signals can help you anticipate potential corrections and manage your risk effectively. Historically speaking, a couple of telling indicators precede the accident. Three of the most obvious have already appeared, such as the meme coin frenzy, sky-high crypto futures funding rates, and highly greedy investors. Crypto investor sentiment from the alternative blew out to 84, or “extreme greed,”on the Crypto Fear & Greed Index.me on November 13, one day after Bitcoin surpassed its $93,300 record high. The last time it posted so high greed was in April. Bitcoin experienced an 18% correction over three weeks, dropping from $69,135 to $56,500 by May 1. This suggests another correction could happen soon, though most analysts remain bullish on Bitcoin’s 2025 outlook. Bitcoin rose to almost $90,000 on November 12, after its best week since the US banking crisis earlier this year. In just one week, the cryptocurrency has added more than US$413 billion to its market capitalization. According to Kris Marszalek, co-founder and chief executive of Crypto.com, the current leveraged ratios—or the amount of borrowed funds for trading positions—are reaching unsustainable levels. In a post on X today, November 12, Marszalek cautioned that leverage needs to be cleaned up before attack on $100k. He also urged…
Filed under: News - @ November 14, 2024 4:27 am