- Bitget’s chief analyst considers the recent crypto market crash a “healthy reset,” which could reinforce Bitcoin and Ethereum’s stronger rebounds.
- Ryan Lee sees a potential retest in BTC’s $100K and ETH’s $3.6K supports.
Ryan Lee, Chief Analyst at Bitget, shared with Blockzeit his company’s thoughts on the recent crypto market crash that wiped roughly $20 billion in leveraged positions during the weekend. He believes the dip is a “healthy reset amid macro headwinds.”
Macro Tension Between the US and China Driving the Recent Crypto Market Crash
Like what many other analysts have surmised, the Bitget chief analyst mainly traced the dip back to the mounting international trade tensions between the US and China. On Friday, US President Trump aggressively responded to China’s President Xi Jinping’s export controls by enforcing the same measure. Additionally, he announced an extra 100% tariffs on top of all Chinese goods’ existing 30% duties in the US by November 1.
The move catalyzed a series of deleveraging across crypto market positions. The event unwound extended positions in Bitcoin (BTC) and Ethereum (ETH), resulting in around $16 million longs getting wrecked.
Looming Dips in Bitcoin and Ethereum
Lee expects the continuation of short-term volatility in the crypto market. He warned investors of a potential retest of Bitcoin’s $100,000 and Ethereum’s $3,600 supports in the near term. Nonetheless, he sees the affair as a “healthy correction that clears out weak hands.”
Moreover, the Bitget official explained that the next dip would lay the groundwork for the renewed accumulation of investors in the crypto market. This could lead to BTC rallying to $130,000 in the medium term, while influencing ETH’s climb to $4,800. He pointed out that the market could get a boost from sustained institutional inflows through exchange-traded funds (ETFs) and digital asset treasuries (DATs).
CryptoQuant echoed the same sentiment in its report on Monday. An analyst from the analytics platform claimed that the weekend’s price drop has “effectively reset leveraged positioning across the board.” Such deleveraging occurrences have often preceded significant uptrends in the long run.
Lessons Learned
Lee said that the latest events underscore the importance of maintaining a disciplined risk management strategy, especially in crypto’s fast-moving market. He also emphasized the importance of platforms like Bitget, which equip users with advanced tools to help them confidently navigate through critical market swings.
Furthermore, the analyst reminded that fundamentals in Bitcoin and Ethereum remain strong as the crypto market evolves into a more mature and resilient ecosystem reinforced by sustainable growth.
Disclaimer: The facts compiled within this article are only for informational purposes. They do not serve as financial advice or product recommendations from the author or the Blockzeit team.
What’s your Reaction?
+1
0
+1
0
+1
0
+1
0
+1
1
+1
0
+1
0
