{"id":2186,"date":"2022-05-27T05:56:57","date_gmt":"2022-05-27T04:56:57","guid":{"rendered":"https:\/\/tradersofcrypto.com\/news\/?p=2186"},"modified":"2022-05-27T05:56:57","modified_gmt":"2022-05-27T04:56:57","slug":"crypto-market-repeats-flash-crash-recovery-pattern","status":"publish","type":"post","link":"https:\/\/tradersofcrypto.com\/news\/crypto-market-repeats-flash-crash-recovery-pattern\/","title":{"rendered":"Crypto Market Repeats Flash Crash, Recovery Pattern"},"content":{"rendered":"\n

Cryptocurrency markets remain highly unpredictable, going though another flash crash followed by a recovery. BTC moved down to $28,928.95 ahead of the weekend<\/a>, on trading volumes of $39B in the past 24 hours. BTC now moves on both sides of the $29,000 level, once again putting into play a more bearish scenario.<\/p>\n\n\n\n

Bitcoin (BTC) briefly dipped to the $28,400 range late on Thursday, threatening to break down support levels that could lead to lower valuations. This more is long expected and for some, actively triggered by whale traders.\u00a0<\/p>\n\n\n\n

Ethereum (ETH) crashed by nearly 10%<\/a> to under $1,800, on more expectations of ETH 2.0 delays and the overall fragility of the system. Avalanche (AVAX) was also among the biggest losers, erasing 11% to $24.25. The current crash happens after a prolonged period of bearish expectations, also waiting for one more big capitulation event.\u00a0<\/p>\n\n\n\n

Bitcoin Vs. Crypto: Who Wins Out<\/strong><\/h3>\n\n\n\n

During the latest bull market, the term of \u201ccrypto\u201d acquired an additional meaning. It came to represent not only tradable coins and tokens, but also decentralized finance and all projects promising high returns. Under the \u201ccrypto\u201d umbrella, there were many projects, from lending to issuers of stablecoins and NFT collections<\/a> tied to staking and passive income.\u00a0<\/p>\n\n\n\n

Some of those projects relied on a constant inflow of new buyers, leading analysts to see thinly veiled Ponzi schemes. In the case of Terra, the notional value was self-derived, leading to a rapid unraveling. <\/p>\n\n\n\n

This highly risky scene made Bitcoin maximalists even more aggressive in their statement that BTC had little to do with \u201ccrypto\u201d in a way of offering high returns or easy gains. <\/p>\n\n\n\n

The latest flash crash also caused a decoupling of BTC from the rest of the assets, with market cap dominance jumping immediately to 45.4%, while Ethereum\u2019s dominance slid to 18.2%. BTC has not achieved this level of market dominance since late 2021, and now shows its strength relative to altcoins. Maximalists also add to the holding trend of BTC, and its potential as a store of wealth and censorship-resistant payments.<\/p>\n\n\n\n

Investors are also still shocked by the crash of Terra (LUNA) and more skeptical of attempts to decentralize financial innovation. While DeFi is still important, some of the liquidity hubs may slow down their growth. <\/p>\n\n\n\n

The NFT market has also slower down, with even the biggest collections losing their previous high valuations. NFT trading is highly unpredictable, and may rely on short-term gains based on high-profile collections.<\/p>\n\n\n\n

Will BTC Break Out<\/strong><\/h3>\n\n\n\n

BTC now awaits the next week\u2019s closing to see if it can abandon its relatively tight range of the past few weeks. The eight-week streak of red candles is setting expectations for a reversal and possibly a trek to a higher valuation. <\/p>\n\n\n\n

\n

Hopium…
It could be a massive broadening wedge\/weekly TF.#Bitcoin<\/a> $BTC<\/a> #BTC<\/a> pic.twitter.com\/M7EaQy5y3j<\/a><\/p>— Johnny Woo | Never DM you for Money (@j0hnnyw00) May 26, 2022<\/a><\/blockquote>