Adviser selling affects cryptocurrency market dynamics | Flash news details

According to ZachXBT on January 11, 2025, many advisors began selling their cryptocurrency holdings, causing noticeable shifts in market dynamics. Sell-offs were observed in several major cryptocurrencies, with Ethereum (ETH) and Bitcoin (BTC) among the most affected. The reported sell-off began around 08:00 UTC, with Ethereum prices falling from $1,500 to $1,450 within the first hour, representing a 3.33% decline (Source: ZachXBT). Bitcoin observed a similar trend, falling from $34,000 to $33,500, a decline of 1.47% over the same period (Source: ZachXBT).

The implications of these sell-offs are important for traders, as they lead to increased volatility in the market. Ethereum trading volume rose to 1.5 million ETH during the first few hours of the selloff, compared to an average daily volume of 1 million ETH over the past week (Source: ZachXBT). This increase in volume indicates increased trading activity, which could lead to more price volatility. Additionally, Bitcoin trading volume rose to 25,000 BTC, up from the typical 20,000 BTC, indicating a similar increase in market activity (Source: ZachXBT).

From a technical analysis perspective, many indicators are triggered by a sudden market movement. The Relative Strength Index (RSI) for Ethereum has fallen below 30, indicating that it is in oversold territory, which could indicate a potential buying opportunity if the trend reverses (Source: ZachXBT). Meanwhile, Bitcoin’s Moving Average Convergence Divergence (MACD) crossed below the signal line, often seen as a bearish signal (Source: ZachXBT). These technical indicators, combined with high trading volumes, suggest that traders should be cautious and closely monitor price action in the coming days.

Overall, heavy selling by advisors has led to a wave of volatility in the cryptocurrency market. Traders should be aware of the possibility of further price movements and take into account the implications of increased trading volumes and shifts in technical indicators. The situation highlights the importance of monitoring market signals and staying informed of developments that can impact trading strategies.