Three Signs that Crypto is Recovering from its Dips in Last Few Days
The crypto market is a very unpredictable one. Due to a lack of proper regulation, cryptocurrencies can soar and crash in a matter of days with no one to turn to. This volatility is also one of its main selling points, as it allows for high-risk high-reward investment. Of course, this is not sustainable, and the market will see a lot of crashes and it will see them often.
However, despite these many crashes, the market has a tendency to bounce back regardless of how many times it falls. In fact, it is so common now that investors don’t focus on why the market fell, but when it will come back. And many investors have been wondering the same since the heavy hit the market took last week. Fortunately, the market doesn’t seem to have taken as bad of a hit.
Although most cryptocurrencies are on a downward trend, bull players in the market have yet to leave. These heavy investors, Whales as some call them, are the ones who own a significant portion of the coin. They can usually make or break a cryptocurrency, and many tokens rely on them.
And in the case of all major cryptocurrencies, the whales have yet to abandon their positions. Instead, the opposite is happening, in that, they are accumulating more coins and tokens. This factor, along with various other analytics goes to show that the market still has plenty more fight left in it.
Recently, Bitcoin’s prices were nosedived, reducing the total by nearly 20%. This drop sent the market into a frenzy and made the perpetual future funding metric go negative for a little while. But as soon as the metric dropped into the negative zone, it promptly made its way back into positives.
The positive value shows that investors in the market still have faith in upwards momentum for the entire sector. But despite the positive attitude, the rate of funding is still much lower than it was back in April or May. Keeping both pieces of information in mind, it is obvious that there is a lot of optimism for the market to grow. However, there are not enough investments to sustain that growth and add to the volatility. So there is still a lot of work required.
Traders are also looking at the age of the coins that are being sold off. This can usually show the types of traders that are leaving the market. So when the whales decide to take their profits and leave, the market will become saturated with older coins. Older coins put pressure on investors to sell their coins, leading to a circle that eventually lead to the market receding in value.