A sharp correction in the crypto market has been underway, with a major Bitcoin drop and a wave of long liquidations to show for it. In his latest analysis, Crypto Jebb breaks down the events behind the move and what traders ought to be looking at from here.<\/p>\n
The numbers tell the story: over the last 24 hours Bitcoin has come off its highs to trade at $83,477. It is a marked change from the bullish run that has been in place since July. The reversal was precipitated by the unwinding of long positions; as the price gave way, those who had bet on higher valuations were compelled to put their holdings on the market.<\/p>\n
Crypto Jebb points out that some $295 million in longs were liquidated, making up the bulk of $500 million in total liquidations. Many of these traders had entered positions expecting Bitcoin to push past the $87,500 mark. But without stop-losses in place to protect them, they were left exposed to the market\u2019s change of direction and the resulting cascade of sales.<\/p>\n
According to Crypto Jebb, what we are seeing now is likely the makings of a textbook ABC correction. The \u2018A\u2019 leg has been the sharp fall we witnessed at the outset, followed by a short-lived bounce in the \u2018B\u2019 leg. A further slide down would make up the \u2018C\u2019 leg. This kind of pattern often appears in the wake of any strong trend as the market takes a breather or reverses ahead of its next major move.<\/p>\n
For the moment, a modest correction is underway while traders adjust their positions. But Jebb cautions that should the pattern run its course, the longer-term picture may be one of a steeper decline.<\/p>\n
As for what lies ahead, Crypto Jebb suggests a Bitcoin slide to $70,000 should be viewed as a solid long-term buying opportunity even if it is a sizeable correction. It is not the death knell for the bull market in any way; rather, it is a healthy reset following some strong gains.<\/p>\n
Newcomers would do well to understand that such liquidations and pullbacks are simply how crypto markets operate. The present major downturn in Bitcoin is a case in point for why one must have risk management in place, like stop-losses, so as not to be at the mercy of volatility.<\/p>\n
This article reflects the channel author\u2019s opinion and is not investment advice.<\/em><\/p>\n Every call by Crypto Jebb and how it played out \u2014 in the BuyCrypt bloggers tracker<\/a>.<\/em><\/p>\n Source \u2014 Crypto Jebb: https:\/\/www.youtube.com\/watch?v=EfG4yzAgA4c<\/a><\/em><\/p>\n <\/p>\n Explore how using a trading simulator can help you practice strategies safely during volatile Bitcoin corrections. practice risk-free trading<\/a>.<\/p>\n <\/p>\n