The crypto market is currently in a consolidation phase as bearish sentiments are dominant ever since last month’s market correction. Over the past 24-hours, the crypto market has lost 4% of its market cap which dipped below $1.5 trillion for a brief period. Key on-chain metrics and market indicators suggest the crypto market is going through a cool-off phase as trading slowed down.
A key on-chain metrics to keep a track of market sentiment is stablecoin inflows on exchanges, the more inflows mean more people are buying and sending stablecoin onto exchanges. USDT exchange inflows reached a new 5-month low today.
Apart from a decline in stablecoin inflow on crypto exchanges, the trading volume also reached a new weekly low, indicating a growing bearish sentiment.
Will Crypto Market See Another Correction?
The Ethereum wallets in profit reached a new monthly low along with a significant decline in mining revenue of ETH miners, reaching an 11-month low.
Bitcoin is on the verge of forming a death cross in the coming weeks and to avoid it, BTC must gain about $1,500 per day to postpone the bearish event. A death cross is seen as a highly bearish signal and if that occurs analysts predict a price retrace to $20K is quite possible. A death cross could also push BTC into a bear market, something the top cryptocurrency has avoided so far.
The Bitcoin price today fell to $34,723 breaking out of the key triangle pattern, however, bounced back right after and currently trading at $35,679. El Salvador’s Bitcoin adoption followed by the announcement of the volcanic bitcoin mining setup couldn’t push the price beyond key resistance of $40K.
Weekends sell-off has become a trend over the past couple of weeks, and to avoid another possible correction, BTC would need to surpass the $40K barrier.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.