Last weekend, Bitcoin (BTC) and the larger crypto market saw an extreme sell-off, which saw Bitcoin and the overall demand for cryptos losing almost 10 percent. Over the past three days, the larger crypto market has lost $250 billion of investors’ wealth.
The largest cryptocurrency globally, Bitcoin (BTC), is now trading at $33,500 by the week’s end. Twitter handles Blockchain Backer. Blockchain Backer says that Bitcoin loses its vital support of 100-day moving average (DMA) can trigger more selling.
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The crypto analyst clarifies:
Bitcoin is closing the week below the 100-week moving mean. The previous two times saw an end to the 200-week moving averages in 2014 and 2018. Today’s chart shows many differences from the two last times and the two periods had a lot in common with the other.
Big dive in tomorrow.
The provider of data on the Santiment further states that traders’ sentiment has shifted to harmful levels.
It reads: With the Bitcoin price now retracing to $33.9k, the sentiment of traders has dropped to six-week lows. We generally prefer these kinds of capitulation signals since, in the event of weak hands, leaving the market is usually what’s required to create a notable rebound.
After today’s correction, the BTC price has dropped by nearly 30% year-to-date.
Altcoin Market Sell-Off, LUNA Crash
Ethereum (ETH) is continuing to track Bitcoin closely. ETH price has dipped just under $2,500 and is nearing the low of $2,200 in 2022.
In the past few days, Terra faced significant price adjustment, with LUNA falling by 20% in one day, despite the massive sale of the UST stablecoin. Concerns about a de-peg were prominent in the price as UST stablecoin fell below $1.0. According to an analyst in crypto, Colin Wu explains:
The circulation of LUNA was up by 957,201 in one day, reaching 91.357 million, which is a record for the supply of LUNA in one day from April 8.
The Luna Foundation is reportedly working on measures to secure the UST piece of Bitcoin.
Source: Google News Trend