• Bitcoin [BTC] has experienced a major crash this week due to strong volatility that favored the bears.
• The sell pressure was fueled by long liquidations as well as reports that the SEC received the green light to file an appeal against Ripple.
• Bitcoin currently stands in an oversold position, suggesting potential for a bounce back in price.
Bitcoin Experiences Unexpected Crash
Bitcoin [BTC] has approached the end of the week with the return of strong volatility which has favored the bears. Capitulation after the previously observed consolidation resulted in sub $27,000 prices and a huge win for short traders. Selling pressure intensified after the price failed to bounce off its long-term support at the $29,000 price level, suggesting a breakdown of investor confidence after a period of low volatility and lateral price movement. This notably sends the price into oversold territory.
What Fueled The Sell Pressure?
The selling pressure was initially fueled by long liquidations after the capitulation. We confirmed that this was the case after observing higher long liquidations than short liquidations since 15 August. The long liquidations peaked at $329.82 million compared to $112.84 million in short liquidations in the last 24 hours. However, there was another major reason behind this latest market crash – Ripple is at its center.. Reports that the SEC just received clearance to file an appeal against their previous ruling that favored Ripple caused Bitcoin holders to get spoofed and triggered more selling pressure on BTC markets.
Will Bitcoin Bounce Back?
As previously noted, Bitcoin stood in an oversold position at press time. This alone could trigger a psychological wave of buying pressure as investors look for signs of recovery from this latest dip below $27K mark. Further strengthening these chances are recent reports indicating increasing institutional interest in BTC futures markets such as Bakkt and CME Group, which may contribute to increased liquidity levels going forward and potentially trigger further upside momentum for BTC/USD prices if other factors remain favorable enough for bulls’ re-entry into crypto markets .
What Does The Future Hold For King Coin?
It remains too early to tell what lies ahead for king coin but analysts believe it will likely depend on how fast investors can recover from this latest shockwave and whether bullish sentiment can be restored soon enough or not; especially with more bad news coming out related to regulatory crackdowns on cryptos like Ethereum lately . It is essential that we keep our eyes peeled on key support & resistance levels across various exchanges & trading platforms so as not to miss any potential entry points or exits if needed during these volatile times .
Conclusion
Overall, it looks like Bitcoin may have some room left before hitting rock bottom . With institutional interest on rise , it might be wise to stay patient yet vigilant while monitoring market developments closely lest one gets caught off guard again by sudden selloffs like what we have witnessed this week .
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