The cryptocurrency market has rebounded after a huge sell off on Saturday night that saw $56 billion wiped off the total market cap. After a bumper week that saw handsome double digit gains experienced by Bitcoin, Ethereum, XRP and more, the entire market received a seismic shock as whales initiated a dump that saw the entire market suffer a flash crash, but a steady recovery throughout Sunday reaffirms that we are in a bull market.
Bitcoin Leads The Way
Following a week in which there seemed to be no stopping the market, led by Bitcoin taking out several lines of resistance, whales spectacularly pulled the rug, sinking Bitcoin by $1,550 and Ethereum by $91:
The selloff was in fact overdue and was not a surprise itself, with the violence of the sell reflecting the length of the uptrend – this was the biggest hourly selloff since early June when Bitcoin crashed back under $10,000 following an $800 candle.
This kind of profit taking is normal in a bullish market, with the depth of the sell wreaking havoc on those who were long on Bitcoin and Ethereum:
A billion dollars was just liquidated just in bitcoin and ethereum.
— Joseph Young (@iamjosephyoung) August 2, 2020
This kind of price action is nothing new in the crypto markets, with some having a very clear idea of who was behind it:
Game on!! Slaughter the suckers that FOMO
— Gold, Silver, Geopolitics & Bitcoin (@Super_Crypto) August 2, 2020
Bull Market Buy Up
In less bullish markets such a selloff would have been catastrophic, but it is a sign of the times that the huge selloff was bought up almost immediately, with some lucky punters able to buy the dip and enjoy an immediate profit. In the 36 hours since the dump, the markets have stabilized and some alts have even enjoyed some very profitable gains, while the total market cap has recovered too, jumping from a low of $310 billion during the crash to $330 billion.
Analysts predict that there will now be a period of consolidation for the major coins while they recover from the recent gold rush and correction before Bitcoin eyes further attempts on yearly highs later in the year.