Mechanical Bear Market Continues

[etfs]

Crypto’s total market cap fell 6% in a single day, losing $1.3 trillion since early October.

The Kobeissi Letter describes the current trend as a mechanical bear market, driven by leveraged positions and cascading liquidations.

Despite the heavy losses, analysts note no significant fundamental bearish developments, suggesting the market may self-correct over time.

Feedback loops from forced selling continue to add downward pressure, emphasizing the need for caution for leveraged traders.

[Nahid Hossen]

This market just refuses to chill

[Abdul Khan]

Feels like every bounce gets crushed instantly.