You may not have a magic ball that shows the future, but it is possible to learn from the past to predict the beginning of new eras. Although some signs alone do not usher in the new era, they may mean that more signals are at the door. Darkfost saw another sign today.
Is the Cryptocurrency Decline Over?
Bitcoin When it regains the 98 thousand and 102 thousand levels, we will see people shouting about the 150 thousand dollar target. And no one will dare to predict deeper bottoms. Just as it is now considered foolish to predict new highs. Darkfost pointed to one of the early signals that the decline may be over.
Spring doesn’t come with a flower, but a $736 million short liquidation may indicate that things are starting to change. The last time there were such large short-selling liquidations was on September 20, 2024, and we all know what happened next.
“Although it was a very small increase, yesterday we saw the largest wave of short position liquidations since 2024. Approximately $736 million of short positions were liquidated. This is a figure that has not been exceeded since September 20, 2024, when liquidations reached $773 million in a single day.
This shows how aggressive short-term investors are right now. Financing rates are generally dominated by short-term investors, indicating that investors are still taking predominantly short-term positions. The accumulation of these positions puts the derivatives market under pressure, while the spot market struggles to create enough liquidity to offset this. “When conditions improve, all accumulated short positions may turn into buying pressure through the liquidation mechanism.”
This is why upward trends are sharp and sudden. However, before we see a rapid rise, what we need to see is a strengthening of these hopes with an increase in demand. For now, Bitcoin is targeting $72 thousand again, and those who have considered every rise in the last 3-4 months as a short selling opportunity are likely to start doing so again in the coming hours. However, at some point, we will see that those who see every rise as a short selling opportunity and are right are wrong, and then the real rise, the return from the bottom, will begin.
Volatility Increases
cryptocurrencies The worst thing for you is constant sideways movement after a decline or rise. We have experienced these boring times in the past months and previous years. Following the ATH level, BTC saw two major declines, and although their durations were not equal, they were almost equal in size. Volatility is increasing and daily moves above 5% indicate that the market is accelerating.
Addressing the current situation, DaanCrypto said;
“I would prefer volatility to be higher because that brings more movement and opportunity in general. The worst thing for this market is that it drops slowly. That’s not what this market tends to bottom out (locally). It bottoms out with big candles and high volatility.”
Right now BTCis trying to turn things around locally with this higher low. “We’ll see how it goes next week.”
