- Major cryptocurrencies are deep in red and below critical support levels.
- BTC came close to DMA100 that may serve as a trigger for short-term recovery.
- Bitcoin’s positioning is at the lowest level since 2018.
Cryptocurrency market broke free from tight ranges with bears are taking control over the situation. All top-20 coins except BNB and USDT are in red, losing from 1% to 7% since this time on Monday.
Bitcoin, the largest and the most popular cryptocurrency, broke below $3,700 handle and touched $3,672 low on Monday before recovering to $3.695 by the time of writing. BTC is down 2.5% on a day-on-day basis. The price came close to DMA100 (currently at $3,686), which may attract new speculative buys and trigger a recovery.
However, some experts believe, that the sell-off will continue. Thus, a cryptoanalyst Willy Woo noticed that Bitcoin positioning reached the lowest levels since 2018, which typically signal the continuation of the trend.
“The last time the market was more indecisive was at the start of 2018. Zones of minimal Long + Short positioning have historically coincided with bearish price action during bear markets (opposite is true for bull markets). When undecided, “the trend is your friend” prevails,” the expert wrote in his Twitter account.
Ethereum, the second largest coin by market value, is changing hands at $126.22 amid growing bearish pressure. The coin has lost 3% since this time on Monday, moving in sync with the market. ETH managed to recover from the recent low at $123.90, but the upside momentum is limited due to overall bearish sentiments.
Ripple’s XRP, the third largest coin, is changing hands at $0.3039, losing 2.5% day-on-day. On a weekly basis, the coin has lost over 6% as a strong recovery on Monday, February 25 slipped out of the data set.
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