A STANDARD CORRECTION FOR THE MARKET

The crypto market dipped a little bit last week and the fact the stock market continues to create consolidated let us know that the cause of the crypto dip is specific to crypto. We don't know for sure what catalyst caused the crypto crash which lets us know that it was based on many factors. They were over 250 million dollars long position liquidation and if you do not what liquidation is, it is simply those that bet that prices of crypto will go up but prices down up dropping which forced them to sell. The liquidation data from the block let us know that about $200 million of long liquidity came from traders that are betting the price of Bitcoin will go up and that is why the price of BTC dipped more than some Altcoins.

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The crypto market started dipping on the 18th of April, the liquidation only started happening when the price of BTC began to dip. We don't know for sure that cause the initial sentiment but it might be because of the sentiment that the cryptocurrency market is getting too much greedy. Of course, if you keep track of the fear and greed index you will know that the market is getting greedy and when the market gets greedy is a good indicator that it's the right time to sell. As of the time of writing, BTCs price was at $27,000 and it was in the range when it was trading last month. If Bitcoin breaks below the $27,300 range, it is possible next stop could be the $22,000 to $25,000 range. On the other hand, if Bitcoin breaks above this range, it will rally to $34,000.

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We are curious if last week's market dip was a standard correction for the market or the beginning of another more dip. Based on the technical analysis point of view, it is not very clear and also from the fundamental point of view, it cryptocurrency market will come close to there previous high without institutional investment. All these that are going like the regulatory uncertainty have discouraged cryptocurrency investment by institutions. Institutional investors at now starting to invest in crypto via indirect means like paper derivatives found on traditional exchanges. We are starting to see this paper derivative beginning to rise which means institutional investors are interested in it.

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