βThere are 3 eras of currency: Commodity based, politically based, and now, math based.β - Chris Dixon
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BTC's bull run seems to have ended, with the cryptocurrency plummeting to under $42k in a matter of minutes, the same day the market celebrates 15 years after the first block of BTC was mined. BTC's positive trend abruptly stopped on this morning, producing a fast drop below $42k in a short duration.
Long liquidations totalling roughly $100 million happened in an hour, bringing the total 24-hour liquidation total to nearly $141 million, primarily from long holdings. The decline was driven by profit-taking and a long squeeze, indicating an overbought market condition that prompted a need for liquidity, and with the risk signal still at 0, we will recover from it.
It appears that we are already attempting to rebound from this morning's sell-off. In any case, this is not a market to bet against anytime soon, and the fact that the $40k level appears to be holding is another evidence of strength.
If we can break out to the upside and clear the $45k mark, there's no reason to assume BTC won't head for $47.5k and then $50k, although the 50-day EMA and the $35k level both provide significant support. In either case, be cautious due to the inherent volatility, but it appears that buyers have the upper hand right now.
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