The recent trend in the cryptocurrency market hasn’t been favorable to the crypto investors as several assets have lost heavily in value. Bitcoin has declined heavily as well, having shed off over 40% in its value in the past week.
A popular crypto analyst on Twitter with the username @dilutionproof said that the crypto market capitulation in the recent week liquidated long positions.
“During this week’s capitulation event, lots of #Bitcoin longs were liquidated – but there was also an uptick in short liquidations
This can be seen as a form of ‘reverse FOMO’; the inverse of aping in leveraged long after breaking the all-time high 🦍
These bear-apes got Rekt…”
The analyst went further to reveal that several Bitcoin miners have turned to accumulate Bitcoins without fear of the bearish trends in the value of the crypto.
Market Indecision on Long or Short Positions
Traders have little clue on the next positions to take according to the @dilutionproof on Twitter.
He made a tweet attaching a graph on futures perpetual funding rates to expand on his opinion.
“The #Bitcoin market’s tendency to go short is decreasing a bit. Looks like traders are a bit indifferent right now as to what direction the next big price move is going… ” the tweet read.
The question in the minds of the entire crypto community is whether this is the end of the bull market. A look at the triggers that pulled down Bitcoin and other altcoins doesn’t indicate a soon recall.
Speculations continue to spread implying that the crashing market is a coordinated effort to shake out unstable holders; while others believe that the dumping of Bitcoin is a sign that altcoins would be taking out the BTC dominance.
This argument is made in the manner Tesla backed out of Bitcoin as a payment alternative and further suggested a move to other altcoins that are environmentally friendly.
