The selling pressure seems to have subsided as the Bitcoin has stabilized around $41,500. The subsiding has occurred due to the reduction in leverage by the crypto traders indicating healthier market and less chances to the downside.
Today the Bitcoin price seems to have stabilized as the selling pressure subsides in the crypto market. The Bitcoin at the time of writing is trading at $41,900 which is a 10.35% drop in 7 days. The reduction in the selling pressure is the resultant of the crypto traders reducing their leverage in the margin and futures instruments. Experts believe that this is a healthy sign and reduces the chances of getting lower from here though markets are unpredictable and we can go lower if the critical support zone around $40K is breached.
The reduction in the leverage by the crypto traders has been due to extreme fear in the market as the sentiment value on the Fear and Greed index falls lower than yesterday. The value was at 18 yesterday and has now reached 10 indicating that traders are extremely fearful about the market and thus they have removed their foot from the peddle.
Earlier in the week a few leveraged traders predicted a bounce and lost as the market fell further, the liquidation data reveals. This week more BTC has been seen to move into exchanges showing a bearish sentiment in the market.
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