The crypto market takes a break from its decline

Market overview

The crypto market rebounded by about 1% to $3.13 trillion, with a cautious attempt at stabilisation after a series of declines over several days. In the short term, there are some signals for a local rebound within the downward trend. However, there are still too few signs of a full-fledged recovery of the bullish rally.

The sentiment index rose to 15. This is still extreme fear territory, but higher than the levels of the previous two days. According to the creators of such indicators, low values provide an opportunity for the bold to buy at a lower price. However, experience suggests that it is wiser to wait for the indicator to exit the extreme fear zone, as the downtrend may continue even with a moderate improvement in sentiment. 

Bitcoin is trading near $91K, and dips below $90K are still attracting sufficient buyer interest. Bitcoin is being sold off intensely for the eighth consecutive day, amid the fourth session of the stock market decline. Cryptocurrencies are once again acting as a leading indicator for the stock market, rather than the stock market pulling crypto along with it. So far, there is no sign of a trigger to reverse this downward trend.

News background

BitMine CEO Tom Lee believes that Bitcoin could bottom out this week amid signs of seller exhaustion. Bitwise calls the current BTC levels ‘a gift for long-term investors.’

Strategy increased its Bitcoin purchases by more than 16 times amid the asset's correction, buying 8,178 BTC last week at an average price of $102,171 per coin. Strategy now owns 649,870 BTC. A day earlier, El Salvador replenished its Bitcoin reserve by 1,090 BTC ($101 million) and now owns 7,474 BTC.

Miners have mined 95% of the 21 million BTC limit programmed by Satoshi Nakamoto. On 17 November, the volume of mined coins exceeded 19.95 million BTC. Miners have 1.05 million BTC left to mine. The last 5% will be mined slowly, over approximately 115 years, until 2140.

According to Arkham, the bankrupt Mt. Gox exchange transferred 10,608 BTC, worth more than $953 million, to a new address. This is the first significant transaction in the last eight months. Some analysts have suggested that the transfer may be preparation for the sale of assets, which will increase pressure on the market.

More than 41% of the total XRP supply (approximately 26.5 billion coins) is in the red, according to Glassnode. This dynamic indicates a ‘structurally fragile’ market, where a significant portion of investors entered positions at peak prices.