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But during the week of October 23, cryptocurrency enthusiasts appear to have decided to follow the pack.
Bitcoin kicked off the week of trading at a low of $ 18,437, and as prices consolidated over the next 28 hours, investors began to enter a state of FOMO. Market participants appear to have feared they would miss out on another lead that will send BTC towards $ 25,000. As a result, a significant number of buy orders were recorded across multiple cryptocurrency exchanges on November 24 which caused prices to rise by nearly 6%.
As the flagship cryptocurrency rose to a new annual high of $ 19,500 on November 25, some of the so-called “whales” were selling their holdings. The sudden increase in sales pressure triggered a long squeeze across the board. As a result, Bitcoin lost 17% to hit a low of $ 16,200.
During the decline, data on the chain shows that around 200,000 traders betting on the upside have been liquidated. Losses accounted for more than $ 2 billion on long positions. Despite the significant downside price action, Bitcoin partially recovered in the last two days of the week.
Prices jumped more than 5% and BTC closed the trading session on Friday, November 27, at $ 17,000. Bitcoin holders suffered a 7.74% weekly loss.
Ethereum holders suffered more than 10% weekly losses
Like Bitcoin, Ethereum also started the week of November 23 with good posture. Its price entered Monday’s trading session at a high of $ 574 and has continued to rise rapidly. It appears that the break of an ascending triangle on November 20th was significant enough to allow for upward momentum in the coming days.
As speculation grew around the Ethereum Foundation hitting the threshold to launch the most anticipated ETH 2.0 update, market participants accepted the narrative. The peak in demand allowed Ether to hit a new annual high of $ 620. But when prices peaked at this level, the Tom Demark (TD) sequential indicator presented a sell signal on the 4-hour chart. which indicated that a pullback would occur.
Those who were able to spot the bearish pattern in time were in luck as what followed was a 23% correction. Ethereum saw its price plummet from a high of $ 620 on November 24 to a low of $ 480 on November 26. Despite significant losses, stablecoins started flooding exchanges as prices were plummeting.
More than 720 million USDT, 230 million DAI, 85 million BUSD and 317 million USDC have been transferred to well-known trading portfolios. The surge in stablecoin inflows suggested marginalized investors were preparing to “buy the drop.” The surge in buy orders helped Ethereum recover some of the losses it suffered to close on Friday, November 27 at $ 517.
Sustained Ethereum holders saw their wallets shrink by 10.13% during the week of November 23rd.
