Is The Crypto Crash OVER?
The big question is: is the market correction over or can we still see the market fall so today were going to go over a couple of major catalysts, a couple of important events and also major technical indicators with the crypto market, moving forward im gon na try And keep these videos under four minutes because i personally enjoy shorter form updates. I think its better when you get right to the point, not waste anyones time, because we all have better things to do than sit for an hour long episode. So if you guys think the same way and enjoy these sort of videos, let me know by liking the video subscribing to the channel commenting down the word short anyways right now. The overall crypto market is bouncing back were seeing the crypto market at a 1.88 trillion dollar market cap and bitcoins price has bounced back above 40 000. A couple of interesting things going on with bitcoins price is that we did see bitcoins price drop below 40 000 per coin. For just a couple of minutes, we saw quickly bounce back and driven back higher by bitcoin bulls, who bought back in whale accounts who bought back in and now we have seen bitcoins price get back above. The 40 000 support, which is a key support line for bitcoin with regards to, if this crypto correction, this market correction is over. Well, we have seen a couple of big catalysts. Big news come out recently.
Evergrand said that they just came out and agreed to a deal to avoid default on key bond. This is important because what was driving the stock market correction, the crypto market correction – was all this flood coming out of china and their second largest property developer evergrand. Who was at risk of defaulting so now? We know that they have already agreed to a deal thats going to allow them to avoid defaulting, which is a positive piece of news for both stocks and crypto. So this is a sign that the widespread fear coming out of china is going to die down, at least for now, and that is a good sign for the market. With regards to a couple of technical indicators, right now, the crypto fear and greed index for bitcoin is at a three month low. We have seen it register extreme fear for the first time in a couple of months at a 21 out of 100, zero is extreme fear, 100 is extreme greed, and this is actually a good sign people who are worried about this well, the last time we were At these same levels, bitcoin had a massive rally. Last time we saw these levels were back in early july right before we saw bitcoins price go from thirty thousand dollars per coin, all the way up to fifty five thousand dollars per coin. Another thing going on with technicals is that were seeing most of the volume most of the people who are selling over the last 48 hours were really some of the most some newbies in crypto people who have not owned crypto for a while.
We could see that a vast majority of people who sold crypto were people who had owned it for less than one week and 99 of the people had crypto for less than three months, so these are very positive catalysts. According to data from glass. Note last thing in terms of technical indicators is that were continuing to see whale accounts purchase more and more bitcoin as the market is falling. So, even though the total number of addresses, with over 1 000 bitcoin have dropped, were seeing that the total value of their positions is continuing to increase, which means all, during this drop. Whales have been scooping up more, and the vast majority of people who have been selling have been these retail investors, and one of the last stories i want to go over is with the sec and chairman gary gensler. Gary gensler came out the other day in a interview, and he said that stable coins and crypto are really like poker chips. He doubled down on his call for more regulation in crypto and he said moving forward. He thinks that, while innovation and all the technology with crypto is great, he thinks the only way were going to really see widespread adoption is if we see more regulations in place for crypto. He said this multiple times in the past, but really he just expanded his view about regulations in this interview and he also sort of called stable coins poker chips. He made that comparison there.
So overall crypto is looking much better today, especially with the fear dying down out of china.