The October 10 Customs message By US President Donald Trump, shock waves sent over the Cryptocurrency market, when Bitcoin (BTC) prices crashed to about $ 102,000 for the first time since August. Registration of approximately $ 800 billion in loss of market value and $ 19.2 billion in positions deleted, the latest crash has the record as one of the largest liquidations that the market has ever seen.
Since the market seems to have found some stability around the price zone of $ 111,000, the latest information on the chain has appeared that paints a pessimistic image regarding the short -term future of the asset.
Analysts say that market reset is not yet complete
On one Quicktake Post On the Cryptoquant platform, a crypt training institute called Xwin Research Japan presents reasons to believe that the Bitcoin market does not yet see a local bottom.
Xwin research began with an interesting comparison with previous years, where BTC experienced a psychological restoration. According to these market experts, the difference between Bitcoin’s previous recovery and this current market crash in studying Bitcoin Net unrealized profit/loss (NUPL) is found to be metrical.
For the context, Bitcoin NUPL Metric traces the total profitability of BTC. This does this by calculating the difference between unrealized gains and losses. From March 2020, when Bitcoin hit large lowness, the NUPL levels fell below zero; The same can be observed in November 2022.
During these periods, it is obvious that investors held BTC at net losses. Interestingly, these periods with market capitulation marked the beginning of strong bull cycles that followed months of hopelessness. What is remarkable about the current crash is that Bitcoin’s NUPL is still at levels close to 0.5, which shows that a significant amount of its holders still has a profit.
BTC -Lugn can point to overhanging storm
To highlight the background mechanics behind Bitcoin’s bromin speed, Xwin research used results from Bitcoin Long Liquidations metric, which works to measure the total value of exploited long positions that are forced to close due to extinction.
As one can expect, the long positions were wiped out with too much leverage in the previous market dump, but it is not the only event that took place. According to the Crypto Research Institution, the open interest also reduced together with BTC’s price, which helped to normalize derivative metrics.
During the market 2018–2019 and 2022, the first dumps cleared the leverage effect, but the real market bottoms came months after the leverage effect on the market, during periods where panic and loss was dominant. Based on this historical data, the current installation seems to indicate that the market is in a pre-capitulation phase, with its stability too fragile to trust.
As it says, the feeling among investors remains intact. But if the market was more scared, and Cryptocurrency NUPL falls to levels near zero, we could see the beginning of a new and sustainable rally.
At press time, bitcoin is valued at about $ 111,110, which reflects any significant 24-hour growth.
Image from Pexels, charts from tradingview.com
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