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The crypto market is currently in a consolidation phase as bearish sentiments are dominant ever since last month’s market correction. Over the past 24-hours, the crypto market has lost 4% of its market cap which dipped below $1.5 trillion for a brief period. Key on-chain metrics and market indicators suggest the crypto market is going through a cool-off phase as trading slowed down.
A key on-chain metrics to keep a track of market sentiment is stablecoin inflows on exchanges, the more inflows mean more people are buying and sending stablecoin onto exchanges. USDT exchange inflows reached a new 5-month low today.
Apart from a decline in stablecoin inflow on crypto exchanges, the trading volume also reached a new weekly low, indicating a growing bearish sentiment.
Will Crypto Market See Another Correction?
The Ethereum wallets in profit reached a new monthly low along with a significant decline in mining revenue of ETH miners, reaching an 11-month low.
Bitcoin is on the verge of forming a death cross in the coming weeks and to avoid it, BTC must gain about $1,500 per day to postpone the bearish event. A death cross is seen as a highly bearish signal and if that occurs analysts predict a price retrace to $20K is quite possible. A death cross could also push BTC into a bear market, something the top cryptocurrency has avoided so far.
The Bitcoin price today fell to $34,723 breaking out of the key triangle pattern, however, bounced back right after and currently trading at $35,679. El Salvador’s Bitcoin adoption followed by the announcement of the volcanic bitcoin mining setup couldn’t push the price beyond key resistance of $40K.
Weekends sell-off has become a trend over the past couple of weeks, and to avoid another possible correction, BTC would need to surpass the $40K barrier.
