The post Digesting the Crash – Is the Bull Market Over? appeared on BitcoinEthereumNews.com.

The bleeding has stopped for now and investors are surveying the carnage. Is the worst over? Or is there more downside to come? This week’s crypto crash has drawn parallels to the tumultuous covid crash of March 2020. This isn’t the first time such drastic market movements have occurred during bull markets, but that offers little comfort to investors currently reevaluating their positions amidst widespread uncertainty. Traders must now decide if Bitcoin’s drop below $53,000 is a prime buying moment or if fears of a further decline to under $47,000 are justified. On August 5th, Bitcoin plummeted by 19%, hitting a near six-month low of $49,320. This drop significantly impacted the optimism in the Bitcoin futures market, pushing the futures premium to its lowest point in three months. However, the market managed a rebound to $53,435, coinciding with a partial recovery in U.S. stocks, which saw the Nasdaq mitigate some of its losses, closing down 3.6% after a more substantial drop earlier. Source: BNC Bitcoin Liquid Index (BLX) A week prior, Bitcoin was trading near $70,000, buoyed by the excitement over a potential Trump presidency and the prospects of Bitcoin becoming a US strategic asset, only to face a sharp 30% fall from its peak, marking the steepest drop this cycle. Amid these market movements, over 275,000 traders were liquidated, with the largest single liquidation order on Huobi involving a BTC/USD trade worth $27 million. Data shows 87% of those affected were long traders, betting on rising prices. This widespread liquidation followed a 24-hour period where Bitcoin dropped over 11%, and Ether fell by up to 25% before a minor recovery. Source: Crypto Fear & Greed Index This significant market correction has driven the crypto fear and greed index to signal “fear,” indicating a potential local bottom, according to the…

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Filed under: News - @ August 5, 2024 10:18 pm