Crypto week ahead for Bitcoin, Ethereum: How market sentiment can challenge shorts

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The cryptocurrency market saw a sharp decline last week, but major assets are leading a reversal in the crypto week ahead...

declined significantly over the past week, with the total market capitalization dropping below the $2 trillion mark. This decline was accompanied by a surge in long liquidation volumes as prices fell across major cryptocurrencies.

However, the market is now showing signs of a reversal. And, the outlook for the crypto week ahead appears positive, compared to the previous week.revealed that the market has had bouts of depreciation in recent weeks. The most significant drop occurred last week, bringing the total market capitalization down to around $1.9 trillion.However, it has rebounded over the past three days, hitting the $2 trillion threshold again.

However, as the market began to recover, the volume of long liquidations fell and short liquidations saw an uptick. This shift suggests the market may be regaining upward momentum and short positions may be increasingly at risk.If this trend continues, the week ahead will be challenging for short positions. Especially as rising asset prices may lead to more short liquidations.

Bitcoin’s market capitalization, at press time, was around $1.13 trillion, representing 56.5% of the total crypto market. Ethereum’s market capitalization stood at $282.9 billion, with a dominance of 14.6%. These two assets remain the most influential in the cryptocurrency space, and their price movements will significantly impact the overall market trajectory of the crypto week ahead.Adewale is a full-time journalist at AMBCrypto. While he is increasingly fascinating by the world of blockchain and cryptocurrencies, Adewale holds a degree in International Relations.

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Crypto SWOT: Bitcoin and the wider crypto market are nursing sharp losses for the monthThe Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.
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