This weekend, the cryptocurrency news brought a lot of reds and dips for Bitcoin, the most dominant cryptocurrency, as well as many other altcoins. Aside from Bitcoin, Ethereum, Ripple and EOS were falling too – as well as almost every altcoin in the top 20.
The market sentiment has changed from bullish to bearish in a matter of hours. And despite February was a great month for cryptocurrencies and there were significant gains seen on the 8th, the 18th and the 23rd – it all comes down to new losses right now.
At the highest point, Bitcoin was up more than 22% for one month, increasing from $3,400 to $4,200 before the market corrected and sold off roughly 10% while bringing the price back well below the $4,000 mark.
Before this sell-off, there were some signs that traders had started positioning themselves for higher BTC prices, mainly illustrated by the Bitcoin short-to-long ratio which has fallen to low levels that haven’t been seen since mid-2018.
In times when the trading volume is otherwise thin, a few big sell orders are all that it takes to ignite such big of a sell-off and cause panic selling among the short-term speculators. Circles like these seem to reinforce themselves repeatedly.
Right now, the total crypto market cap is valued at $128, which is more than $10 billion less than the $139 billion market we all remember (from few days ago).
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