Bitcoin Tumbles Below $57k, Eth Back Under $4000

The bears are wrestling back control over the crypto markets. Bitcoin all but ceded its $60 000 support today, while Ether has suffered a more drastic fall below $4000. This marks an unexpected pullback in what is traditionally a bullish time of year. However, HODLers remain optimistic, viewing the correction as a good time to buy.

Squeezing Out The Leverage Traders

Data from CoinGecko shows the total cryptocurrency market cap dipping below $2.6 trillion earlier today. This marks an over 10% drop from an all-time high of $3 trillion last week. Bitcoin is now well under its recent $69k high, while Ethereum has receded 15+% from its ATH within seven days.

Unlike previous pullbacks, Bitcoin hasn’t exactly been in freefall. Instead, it has seen a slow but steady decline since its peak. Also, it tested $60k multiple times before breaking downwards.

A recent report from Delphi Digital – a crypto research firm – weighed in on what triggered the selloff. They identify “a wave of liquidations” as the culprit, “rather than a fundamental shift in the narrative”. Liquidations and leverage have been significant factors this year, primarily responsible for the market crashes in both May and September.

The firm suggested that BTC could dip as low as $55k from here. However, it also believes any drawdown will be temporary. This would match the Bitcoin fear and greed index indicators, which currently gauges the market as a bit overcautious.

“If BTC takes another leg lower it could set up an even more attractive entry for those with long-term conviction looking to accumulate,” said Delphi.

What Do Traders Think?

Pseudonymous Twitter analyst John Wick confessed his concern watching Bitcoin break support earlier today. However, he added that this shouldn’t be of great import to long-term holders.

Many in the space are viewing now as a good time to buy. For example, John Pompliano of the Best Business Show expresses no worry about the downturn. “I’m not freaking out; I’m looking for a buying opportunity,” he said on the show today.

Bitcoin live price
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3 Capital – a mining analyst from the blackware team noticed similar behavior on-chain. He notes that Bitcoin’s liquid supply has decreased by 145 000 over the past 30 days. “This is the largest recorded decrease in the last three years,” he notes. “HODLers are stacking.”

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