Bitcoin, Ethereum & Crypto Analysts Search for Bottom as Investors in 'Historically Meaningful Degree' of Pain

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Bitcoin, Ethereum & Crypto Analysts Search for Bottom as Investors in 'Historically Meaningful Degree' of Pain

As Bitcoin (BTC) and the broader crypto market are trying to recover after diving below crucial levels this past weekend, analysts are digging into data, trying to identify the next steps in the market. 

"The selloff over the weekend can be considered to have plunged profitability and investors into a historically meaningful degree of financial pain," crypto analytics firm Glassnode said in their report today. 

According to them, with forced sellers appearing to drive much of the recent sell-side, the market might begin to eye whether signals of seller exhaustion are emerging over the coming weeks and months.

"Given the tighter correlation between traditional markets like the NYSE, the Nasdaq, and the crypto markets, I don't think the [BTC] bottom is in. I think a few things need to happen for the bottom to hit: 1. Inflation needs to ease, 2. Unemployment needs to stabilize and 3. Weaker US dollar,” Shayne Higdon, Co-Founder and CEO of the HBAR Foundation, said in an emailed comment.

On Monday at 16:01 UTC, bitcoin traded at USD 20,786, up 4% for the past 24 hours and down 22% for the past 7 days. At the same time, ethereum (ETH) stood at USD 1,132, up 6% for the day and down almost 22% for the week.

Although bitcoin remained in positive territory for the past 24 hours, the lower prices earlier in the weekend caused relatively large liquidations of leveraged traders who were long. According to data from Coinglass, close to USD 109m were liquidated in the 12 hours between midnight and noon on Saturday in the bitcoin market alone.

Notably, however, the liquidations were still smaller than the massive long liquidations