Andrew Kang, co-founder and partner of Mechanism Capital, has stated that most market participants have not realized the significance of Bitcoin potentially breaking below the price range it has held for four months. Kang compares the current market situation to the range in May 2021, when Bitcoin and other cryptocurrencies also experienced a parabolic surge. The leverage in the cryptocurrency market this time has exceeded 50 billion dollars (excluding CME), a point also close to the historical peak, and the situation is more complex. Kang explains that the duration of this high-level consolidation range is longer (18 weeks compared to 13 weeks), and to date, there has not been an extreme liquidation, whereas the mid-term of the bull market in 2020-2021 experienced several retracements.
Kang concludes, “It is very likely that my initial estimate of below 50,000 dollars was too conservative; we may see a more extreme correction to the 40,000 dollars range. Such a pullback would be quite harmful to the market, and it might take several months of oscillation/downtrend (recovery period) before a reversal of the upward trend could occur”
Successful Conclusion of CoinEx Taiwan’s 7th Anniversary Celebration, Embracing the Arrival of the Web3 Era Hand in Hand with Users
Since its establishment in 2017, CoinEx has been a professional cryptocurrency trading pla…