With huge selling pressure, will crypto face another crash?

After the dreaded crypto winter of 2018, 2022 marks the beginning of a new bearish trend. In addition, it was accompanied by a sharp drop in the value of cryptocurrencies and a larger global market meltdown. This creates a dilemma for the direction of the cryptocurrency market towards 2023.

Will Crypto Face Another Crash?

After conducting extensive research on crypto exchange netflows and historical metrics, a number of salient hypotheses have been formulated by leading cryptocurrency analysts in the industry.

According to the data, when the netflow approaches zero, it eventually becomes positive. The result is fewer buyers and more sellers. Concurrently with the positive turn, localized peaks may be observed, followed by an increasing amount of selling pressure on the market in the future. This could lead to a continuation of the downtrend and a loss of the current support.

“Exchange Net Flow” is a metric that measures the total net amount of cryptocurrency flowing into and out of all centralized exchange wallets. This metric can be positive or negative, and the value is determined by subtracting the total amount of funds brought into the exchange from the total amount withdrawn.

read more: MicroStrategy will sell 704 Bitcoins (BTC) for the first time for this reason

Has the price of Bitcoin hit bottom?

As CoinGape previously reported, the price of Bitcoin (BTC) could fall further given that the top cryptocurrency is not yet undervalued and has not bottomed out.

Additionally, the degree of volatility seen in the influx of stablecoins traded on physical exchanges has reached an all-time high. This suggests that Bitcoin could start a bull market or collapse to a new bottom in the near future.

As it stands, the Bitcoin price is currently trading at $16,532. According to crypto market tracker CoinMarketCap, this represents his 0.61% decline in one day, and a further 1.85% decline in a week.

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Pratik has been a crypto evangelist since 2016 and has experienced almost everything crypto has to offer. He has seen it all: the ICO boom, the 2018 bear market, and the Bitcoin halving to date.

The content presented may contain the author’s personal opinions and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication accepts no responsibility for your personal financial loss.