The crypto space hasn’t been doing all that well, lately. The industry – which recently experienced a crash that brought it below the $3 trillion mark – has lost about $500 billion over the past seven days, as many investors have seemingly cashed out after bitcoin rose to a new all-time high of nearly $69,000.
Bitcoin and Crypto Experience Further Drops
We have seen this time and time again. Sadly, the space is filled with many individuals who have short-term goals. It doesn’t seem to occur to them that when something is rising, there is a good chance it could rise even more, as in the case of bitcoin. When it hit $68,000 not too long ago, there was nothing in the charts insinuating that a drop would occur immediately after. This action is arguably caused by investors who saw the all-time high and decided to sell their units to make some quick and early profit.
At the time of writing, the world’s number one digital currency by market cap has fallen by nearly 18 percent, of which 13 percent has been lost in just the last week alone. This is one of the biggest slips the currency has experienced in the latter half of 2021. Will Morris – sales trader at Global Block in the United Kingdom – explained in an interview:
If the downturn continues, the 14-day relative strength index will register an oversold reading for the first time since May when BTC fell below $30,000.
Looking at recent technical analyses, should the relative strength index for bitcoin drop below 30 at some point, this would be an insinuation that the currency is oversold, and thus would be set to bounce soon. According to Morris, the Cryptocurrency Market Fear and Greed index has fallen to its lowest point in over a month. Presently, it reads 34, which suggests fear in the crypto trading space is quite high. Morris says:
The amount of BTC and ETH on exchanges continues to fall to lower levels and whales continue to accumulate.
Some Aren’t Taking This Badly
While all this may seem scary at first, there are several crypto investors out there that look upon situations like these as valid opportunities in which they can rush in and make some quick purchases at lesser prices. Johnny Lyu – the CEO of crypto exchange Ku Coin – mentioned:
Many market participants are taking advantage of the situation and rushing to stock up on cryptocurrencies from the top-10 list on a drawdown, as indicated by various indicators. It is therefore too early to talk about a general market transition into a bearish phase, since institutional investors are maintaining their cryptocurrency portfolio positions.
Besides bitcoin, several smaller altcoins – such as Ethereum, Dogecoin, Solana, and Shiba Inu Coin – have dropped by anywhere between nine and 18 percent at press time.
The post Bitcoin and Crypto Crash Further; Half a Trillion Lost in a Week appeared first on Live Bitcoin News.
Source: Live Bitcoin News