Cryptocurrency Sentiment Plunges, Triggering Market Correction

Cryptocurrency Sentiment Plunges, Triggering Market Correction
Cryptocurrency Sentiment Plunges, Triggering Market Correction

Market Sentiment and Price Action

The cryptocurrency market has witnessed a significant decline in sentiment, with Bitcoin (BTC) and Ethereum (ETH) leading the charge. BTC has lost 5.81% in the past week but has gained 0.83% in the past 24 hours, while ETH has dropped 7.25% and 0.31% over the same periods. At the time of writing, BTC trades at $66,211.32 and ETH at $3,326.67.

Technical indicators suggest the possibility of a bearish trend, attributed to price corrections ahead of the Bitcoin Halving event.

Trader Commentary

Crypto trader Jelle has observed that funding rates are plummeting, pushing BTC and ETH margined contracts into negative territory due to speculation. He believes this signals the destruction of leverage prior to price discovery.

Despite the decline, whales continue to accumulate BTC, viewing any dips as opportunities for future profit. However, the market remains volatile, with BTC and ETH experiencing a free-fall ahead of the Halving event.

Volatility and Future Prospects

BTC is expected to be more volatile than ETH, driven by the Halving and fluctuating community sentiment. ETH may find relative stability due to uncertainty surrounding the approval of its ETF.

Despite the current decline, a bull run or rebound is expected in the crypto market. BTC's price is projected to reach $100,000 by the end of 2024, with a potential high of $150,000. ETH could potentially hit $4,000 within the same timeframe.

The current market downturn may be a correction, and while notable traders have differing opinions, the consensus is that a price rebound is likely for BTC, ETH, and other tokens.

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