The cryptocurrency market has gone through a difficult week. After falling from all-time highs on the previous Sunday, the bitcoin price resumed its decline on Thursday until it reached a local low below $48 000. In just two days, the volume of liquidations exceeded $14 billion.
With the beginning of the new week, the market started to recover. Having set a lower low at $47 000 shortly after midnight, bitcoin gained more than 12% in a few hours and is trading around $52 800 at time of publication. Growth from minimum to maximum amounted to almost $6 000. Crypto market capitalisation is again more than $2 trillion.
The last jump came with the closing of the gap in the Bitcoin futures chart of the Chicago Mercantile Exchange and the squeeze of short positions.
The volume of liquidations of such positions in the last four hours amounted to $240 million. The total volume of liquidations per day exceeds $1 billion, with the majority of the liquidated positions again on the bullish side.
Last week ended for bitcoin with the second largest red candlestick in the history of cryptocurrency. Against this background, the market approached the levels of March 2020 in terms of the oversold indicator. Oversell is determined according to the Relative Strength Index (RSI) and is used to describe situations when the price has fallen too quickly and deeply, that is, an increase is expected.
The share of losing bitcoin addresses reached a six-month high last week. However, almost 86% of cryptocurrency coins still remain profitable for their holders.
Many cryptocurrencies in the previous segment updated their lows in the last few weeks.