Bitcoin price faces $297M liquidation wave – Why $70K is at risk
영어 원문번역 보기
글자 크기본문 읽기 ↓
이미지 불러오는 중
Though the momentum was now bearish, a Bitcoin price drop to new lows below the bear market bottom at $57.8k is unlikely.
The crypto markets saw another wave of liquidations. In the past 24 hours, Bitcoin [BTC] and Ethereum [ETH] saw $297.17 million and $491.97 million in liquidations, respectively.
Only 7.9% and 7.8% of those liquidations were short positions, as Bitcoin fell 3.20% and Ethereum plummeted 7.90% within hours.
What triggered the crypto sell-off?
In recent weeks, the Binance heist of $6.3 billion severely affected BTC price action. The Mercado Bitcoin security incident also impacted market sentiment, and the loss of a key onchain support level was a warning of a deeper correction.
Source: The Kobeissi Letter on X
In a post on X, the Kobeissi Letter detailed how the S&P 500 Futures had erased an implied $300 billion in market cap a minute after the 6.00 PM ET open. Under ten minutes later, all losses were erased as traders bought the dip.
Nvidia’s CEO Jensen Huang had admitted to a “relationship” with a Chinese spy, which helped stage a quickly undone correction, the global capital markets commentary wrote.
What next for Bitcoin?
The fall in recent hours reached a low of $73.5k. Sentiment was already weak, and the swift liquidation cascade has likely made market participants more risk-averse.
The reaction of the S&P 500 suggested buyer strength, which could translate into strong crypto demand later, during the New York session open.
Source: Alex Thorn on X
AMBCrypto reported that Bitcoin prices had fallen below the true market mean at $77.6k recently. Now, it was also trading below the 50-week Moving Average (MA).
Head of Research at Galaxy, Alex Thorn, pointed out that BTC has only slipped below its 50-week MA twice, after reclaiming it as a post-bear bottom. In neither of those times, which were in 2012 and 2019-20, did BTC descend to new weekly lows.
Source: BTC/USDT on TradingView
The weekly structure was bullish, following the close above $82,850. The weekly low in question is at $57.8k, which Thorn pointed out was not at risk, based on the historical 50-week MA loss following a recovery from a bear market.
At the time of writing, the momentum was bearish, and a price drop below $70k was feasible. The $65k-$66k area would represent a deep discount opportunity for buyers. In the coming days, more losses appeared likely.
Final Summary
• The stock market sell-off and the subsequent recovery of the S&P 500 futures losses helped explain the sudden volatility in the crypto markets.
• Though the momentum was now bearish, a price drop to new lows below $57,800 appeared unlikely, based on historical data.
