There is a great deal of worry among investors about the state of the economy.
The crypto markets looked bleak on October 21st, with BTC and ETH on the verge of breaking below key weekly support levels. Some altcoins saw some growth, but not the two largest cryptocurrencies. ETH and BTC chose to diverge from the altcoins, charting their own courses.
While traders were experiencing huge losses, both Bitcoin and Ethereum saw large transactions. According to Santiment, Bitcoin has seen its lowest ratio of loss vs. profit transactions in 4.5 months, and Ethereum has recorded historically low levels.
Looking at the graph, the analytical platform added,
In this market, traders opened up large short positions, as shown by the funding rates. Santiment noted that liquidations are often common, and a surprise bounce could occur in such scenarios. This suggests that the market may be on the rebound.
Lessons from past
Both Bitcoin and Ethereum have recently confronted the prevailing narrative. Since the merge, the number of trades on the Ethereum network has been in decline. The removal of these individuals who are not committed to the cause could indeed aid the network given the capitulation phase.
Bitcoin also joined the same group. Whalemap, a monitoring resource, flagged a transaction involving a large amount of BTC. Whalemap was quick to argue that the classic bear market narrative was wrong — major investors were not capitulating at the lows.
Is there a glimmer of hope for a recovery in the bearish market? There is certainly the potential for something beautiful to happen here. As of this writing, both Bitcoin and Ethereum have seen a slight uptick in price on CoinMarketCap. One must consider the possibility that there could be more corrections.
