Will crypto prices drop lower? Data from Hyblock Capital suggests so.

The price of Bitcoin dropped by ~5% to $25,050 hours after the Fed announced a rate pause, to the surprise of many. However, data suggests prices will drop even lower before they get "much higher."

Hyblock Capital is a crypto analytics dashboard that provides tools to visualize order flow, liquidity, etc.

What does their data say?

75.66% of accounts on Binance are in a long position, the highest this year. Longs in the 74-85% range happened 16,255 times out of 209,221 five-minute periods in the last two years.

Each time this happens, "price dropped by a significantly higher rate than the benchmark."

Here's the good news. Data shows that over the next 3-7 days after this event, the price "actually moves up at a much higher rate."

I hope this is helpful!