Top 3 Reasons Why Major cryptocurrencies Entered Correction Phase!

[ziyanmusk]

The top cryptocurrencies on the market entered an active correction phase after a substantial shift in attitude on the cryptocurrency market, losing up to 5% of their value, and here are the likely reasons, according to CoinMarketCap.

Market Oversaturation
Oversaturation of the market is usually the primary cause of any short-term correction following a big market pump. Whenever the market circumstances improve, traders become more active, bringing more purchasing power into the market.

As time passes, the equilibrium between asks and bids deteriorates, resulting in volatility spikes. When liquidity falls and selling pressure arises, most assets lose a portion of their value before recovering. Traders become less psychologically stable as a result of technical oversaturation, and they tend to take profits earlier than necessary.

[TomPluz]

Am not actually a good analyst when it comes to the cryptocurrency market but I understand that there is always that cycle at play in here and they can happen again and again to specific assets in the crypto space. Right now, we can be moving sideways after some good pumps days ago, still am so happy that eventually Bitcoin pushed upwards away from the $40K level...though nobody can be sure if the winter bears will not be waving some hello soon.