btcmarkettrends

While we lack a crystal ball to reveal the future, history often lends valuable lessons for predicting the start of new market cycles. Certain signs, even if not definitive proof alone, can herald that more signals are just around the corner. Today, Darkfost highlighted another potential turning point in the crypto landscape.
Is the Crypto Slump Over?
Market observers predict that once Bitcoin ( $BTC ) climbs back to the $98,000 and $102,000 thresholds, the chorus calling for $150,000 targets will swell—and the appetite for dire forecasts will wane. Right now, voicing predictions of new records may seem foolish, but early indicators are emerging that the downturn might be nearing its end. Among the clearest signs: a significant wave of short liquidations, which Darkfost flagged as an early signal of a shifting market.

A single event does not guarantee a trend reversal, but the recent $736 million in short liquidations could indeed suggest the tide is turning. The last such dramatic unwinding of short positions occurred on September 20, 2024—a date that marked a decisive market moment well-remembered by traders.

This is precisely why rallies in crypto tend to be abrupt and dramatic. However, for a rapid surge to materialize, growing demand must reinforce these emerging hopes. At present, Bitcoin is once again eyeing the $72,000 mark. Over recent months, many have viewed each rally as another shorting opportunity, and it is plausible that this pattern will repeat in the coming hours. Yet, at some point, those betting against every uptick will be caught off guard, and the real recovery—the return from the bottom—will begin in earnest.

Volatility Picks Up
For cryptocurrencies, the worst scenario is a prolonged sideways drift following sharp ups or downs. Over the past months and even in recent years, such dull stretches have periodically plagued the market. After hitting all-time highs, Bitcoin suffered two major drops; though the duration of each was not identical, both saw nearly equal depth. Lately, volatility is on the rise again, with daily swings above 5%, pointing to an accelerating market pace.

Periods of low volatility and sideways action tend to frustrate both bulls and bears. For many, anticipation builds as they wait for the signal that a true trend reversal is underway. Historically, large-scale liquidations and volatility spikes often precede a meaningful move, shaking out weak hands before a reversal takes hold.

With funding rates reflecting the dominance of short-term strategies, any surprise rally could force a rapid exit from leveraged short positions. As the pattern repeats, those expecting every rise to fade may eventually find themselves trailing a real breakout. When this tipping point hits, it’s likely to catch the broader market off guard—potentially unleashing a cascade of buying fueled by both liquidations and renewed spot demand.

While it remains too early to declare a sustained bull run, recent data suggest that the days of drift and decline might be numbered. Both the magnitude of liquidations and the uptick in volatility hint at a market gathering strength for its next dynamic move.
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