Why did the market suddenly crash? Black Friday in the cryptocurrency world is shaking!
Bitcoin and Ethereum have continued to plummet, with the entire network losing $109 million in the past hour, mainly due to long positions being liquidated. Black Friday in the cryptocurrency world is shaking; this wave of decline is actually not complicated. Simply put, it’s that the high positions couldn’t rise, and funds began to withdraw, eventually leading to a crash.
From the candlestick chart, both Bitcoin and Ethereum have been weakening with continuous fluctuations. Each rebound is becoming increasingly weak, and previous attempts to breach key resistance levels (Bitcoin at 70,000, Ethereum at 2,200) have all failed, directly shattering the confidence of long positions. Many people started to take profits and leave the market, while short positions entered the market, changing the trend from “unable to rise” to “downward crash.”
Moreover, the expectation of interest rate hikes is putting pressure on the funds, making them hesitant to enter the market. Market sentiment has turned cold, and large funds are gradually withdrawing, leading to deteriorating liquidity. The final wave of accelerated decline is essentially triggered by the continuous liquidation of long positions, resulting in a cascading effect. The more liquidations, the sharper the decline, which is why this waterfall market appears.
Unable to rise + no one buying the dip leads to a logical result of decline. Currently, it’s still wise not to blindly enter the market to catch the bottom; instead, follow the trend and short!