The crypto market crash eased during the weekend as investors bought the recent dip, and as American stocks rebounded from their Thursday crash. Bitcoin price rose to $86,500 from last week’s low of $80,000. 

Other top cryptocurrencies were also in the green, with Ethereum, XRP, Solana, and Chainlink rising by over 3% in the last 24 hours. As a result, the market cap of all coins is nearing the important milestone of $3 trillion. So, is this the end of the recent crypto crash or is it a dead-cat bounce?

Top cryptocurrencies rebounded today

Why the crypto market is going up today

Bitcoin and most altcoins are rising today, Nov. 23, for several reasons. First, there are signs that investors are buying the dip after most coins moved to the oversold levels. It is common for tokens to bounce back whenever this happens as investors buy the dip.

Second, cryptocurrencies are going up as investors start deploying leverage again. Data compiled by CoinGlass shows that the futures open interest rose by nearly 4% on Sunday morning to $126 billion. Rising open interest is often a good thing as it points to more demand among investors. 

Third, there was less forced selling pressure in the market as liquidations tumbled. Total liquidations dropped by 88% in the last 24 hours to $208 million. 

Data shows that 115k traders were liquidated in the same period, with the biggest one being a $3 million HYPE trade on Hyperliquid. The falling liquidations is a good thing because the recent surge partially explains why Bitcoin and most altcoins tumbled.

However, it is worth noting that liquidation data often plunge during the weekend when many people are not trading. 

The crypto market rally is also happening as traders wait for more altcoin ETF launches. Some notable listings to watch will be on coins like XRP and Dogecoin. These launches come as data shows that the there is robust demand for altcoin ETFs.

Is this the end of the crypto crash?

Bitcoin price has jumped by 7.3% from its lowest level this year, while other tokens like Ether and Solana have done better. 

The main risk is that this rebound is a dead-cat bounce (DCB). A DCB is a situation where an asset in a freefall bounces back briefly and then resumes the downtrend. It is often known as a bull trap because it mostly affects retail investors.

One way to avoid being caught up in a dead-cat bounce is to wait for Bitcoin to move above key moving averages. Also, one can wait for the formation of a pattern like a double-bottom to confirm that a new bull run is happening.

Still, there are signs that the end of the ongoing crypto market crash is near. For one, the Crypto Fear and Greed Index remains in the extreme fear zone of 11. Historically, most crypto bull runs start when there is a sense of fear in the market.

Also, there are signs that whales are aggressively buying the dip. A good example of this is Michael Saylor’s Strategy, which spent over $800 million in accumulation last week. He has hinted that he continued buying the dip. 

Tom Lee’s BitMine has also continued buying Ethereum in the past few weeks. In his statement, he argues that the ongoing sell-off is part of volatility, which is a normal part of the crypto market. 

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