Fears of a potential collapse in the cryptocurrency market are intensifying, linked to the actions of significant players such as Machi Big Brother, who closed all long positions, securing over $33.8 million in profits.
Technical Indicators Signal Risks for Cryptocurrencies
Bitcoin’s price failed in two attempts to breach the $120,000 resistance level. Weak trading volume during upward movements indicates a lack of strong buying pressure. This situation could lead to sharp price movements if the momentum weakens.
Motivation Behind Whales Closing Positions
The decision by renowned cryptocurrency whale Machi Big Brother to close positions highlights profit-taking and risk management strategies. Such moves by major investors are typically observed when prices approach peaks, coinciding with increased interest from smaller investors.
Probability of Short-Term Correction in the Market
Bitcoin's failure to surpass critical resistance along with technical weaknesses in Ethereum increases the likelihood of a short-term pullback. However, if new buyer interest emerges, this movement might remain a correction within a long-term upward trend.
The situation in the cryptocurrency market remains tense, and its future behavior will depend on the emergence of new demand that can fill the gap left by the actions of major investors.
