During the past few weeks, the crypto community witnessed a continuous drop up to 15% from its peak. Experts pointed out that the growth rate necessitated the heavy price correction, and more price drops could occur in the future. The currency, which stabilized around $34,000 yesterday, is losing support as it falls within 31,000-32,000 price ranges.
During the first few corrections, traders opined that the asset would skyrocket. Unfortunately, Bitcoin is seeing further corrections taking it to its December value. Within the past few days, Bitcoin dropped with the $31,000, causing some worries for the digital asset industry. Although charts reveal that the selling pressure had reduced, current situations speak otherwise. Statistics show that the BTC market could be gradually moving bullish, with expert traders taking the lead.
Traders heavily buy dips and futures
One of the most outstanding support could be the traders buying dips and futures, helping it to stabilize to some degree. Since its constant fall below the $32,000 support level, the next move is moving upward the charts due to those purchases.
Experts explain that the digital asset’s correction from its peak hurt investors financially, but notwithstanding, some are buying more. When the asset dropped to near the $30,000 range, investors had lost millions of dollars. The price drop would significantly affect the industry’s market cap and will shrink BTC’s current market.
Long contracts also saw some notable losses during the first days of the price crash, losing almost $2 billion, wiping out 25% from their previous value. Unlike new traders, experienced ones understand BTC’s situation and don’t allow sudden price changes to influence their investment decisions. Looking at some exchange’s figures, one can know if investors are moving long or short teem on their crypto investments.
Crypto exchanges statistics show customer’s stance
OKEx records an interesting wave of new long positions, which exceeds the past month’s situation. When talking about the Huobi derivatives, with notable increases in short positions against long, shorts boosted when prices crashed further. Binance revealed an astonishing record of longs, with investors preferring longs to shorts on that platform.
Experts reveal that experienced traders enjoy longer-term investments when looking at charts, and they can decipher the market’s bullish situation from at assertion. Looking at the asset’s recent price changes, expert traders know how to manipulate the market and benefit from that.
New investors should note that cryptocurrencies are usually volatile since their daily volatility rate could be up to 4%, which is enough to bring significant price changes. Three days after the new year, BTC price dropped to the $29,000 market, before it continued skyrocketing till it reached the peak. Digital assets sometimes fluctuate due to the influx of new and inexperienced traders, who make sudden investment decisions even with short-term price corrections.
The beginning of the year saw a massive sell-off, where some individuals wanted to secure their profits, causing an incredible trading volume. The crypto community recently hit an all-time trading volume high linked to new traders entering the industry to explore available options.