Crypto Market Correction Deepens, Bears Take Control
After cryptocurrency bulls have dominated the space over the past months, the bears are finally in charge of the market. The cryptocurrency market deepens further adding to investors woes.
Bitcoin and other popular altcoins have been testing crucial support levels as the overall crypto market cap drops to $2.52 trillion. As of press time, Bitcoin is trading at 2.27% down at a price of $58,300 with a market cap of $1.1 trillion.
The Bitcoin price has corrected more than 12% in the last three days amid strong selling activity. This comes despite the Bitcoin blockchain undergoing a major upgrade with the Taproot protocol.
However, as the Bitcoin (BTC) price continues to hold under $60,000 levels, there’s some spike in the social interest for buying the BTC price dips.
Bitcoin Buy the Dip (Courtesy: Santiment)
However, bears could be set in for a surprise from the bulls at this stage. On-chain dat from Glassnode shows that Bitcoin’s Illiquid Supply is going parabolic. The last time the illiquid supply shot this much high was before the bull run of 2017.
Bitcoin BTC Illiquid Supply (Courtesy: Glassnode)
Despite this correction, Bitcoin is still 40% up after its tepid performance by the end of September 2021. However, the recent price correction in Bitcoin has triggered a broader market sell-off.
Altcoin Market Tanks Heavily, Ethereum (ETH) Tests Crucial Support of $4,000
The altcoin market has followed up largely with the BTC price correction with altcoins dropping heavily. Ethereum (ETH) has slipped an additional 5% today and is trading close to its crucial support levels of $4,000.
There has been interesting correlation between the non-exchange Ethereum whales and the exchange Etheruem whales. As on-chain data provider Santiment reported, the top ten non-exchange whale addresses for Ethereum (ETH) have continued to move funds away from the exchanges.
Ethereum Whale Addresses (Courtesy: Santiment)
The world’s second-largest cryptocurrency has corrected more than 15% from its all-time high above $4,800 levels. As per Santiment, Ethereum’s trader returns have dropped into the negative territory which historically presents a low-risk buying opportunity.
Ethereum ETH Trader Returns (Courtesy: Santiment)
Ethereum-competitor Solana has entered a deeper correction and is currently trading 10% down at a price of $193. All of the other top-ten altcoins have corrected anywhere between 5-10% as of now.
Crypto Market News: India Holds a Positive Approach for Crypto
After months of uncertainty, India is finally setting up some positive tone for the use of cryptocurrencies. The country is likely to consider the use of digital assets as an asset class but no as a payments’ method.
While speaking at the Sydney Dialogue on Wednesday, November 18, Indian PM Narendra Modi said that democracies must come together to ensure proper regulatory measures to ensure that the asset doesn’t end up in the wrong hands.
India might possibly start pilot testing for its central bank digital currency (CBDC) by the first quarter of 2022.