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Bitcoin fell 3.20% in the past 24 hours, reaching a recent low of $73,500, as the cryptocurrency market experienced a significant wave of liquidations. Ethereum dropped more sharply, plummeting 7.90% over the same period. According to AMBCrypto, these declines triggered $297.17 million in Bitcoin liquidations and $491.97 million in Ethereum liquidations.
Earlier reporting: PEPE climbs 5.13% while Bitcoin and Ethereum fall.
As of 10:41 UTC, Bitcoin traded at $74,196, +0.2% over 24 hours, with $24.6 billion in 24-hour volume.
The majority of these liquidations were long positions, with only 7.9% of Bitcoin liquidations and 7.8% of Ethereum liquidations attributed to short positions. The rapid price action occurred within hours, reflecting heightened volatility in digital asset markets.
Market Sentiment and Triggers
The sell-off was influenced by several recent security incidents and macroeconomic factors. A $6.3 billion heist from the Binance exchange had severely affected Bitcoin price action in recent weeks. Additionally, a security incident at Mercado Bitcoin impacted broader market sentiment. The loss of a key on-chain support level served as a warning of a deeper correction.
Volatility in traditional equities also played a role. The Kobeissi Letter, a global capital markets commentary, detailed how S&P 500 Futures erased an implied $300 billion in market cap one minute after the 6:00 PM ET open. However, all S&P 500 losses were erased under ten minutes later as traders bought the dip. The commentary noted that Nvidia CEO Jensen Huang’s admission of a “relationship” with a Chinese spy helped stage a quickly undone correction in the stock market.
Technical Analysis and Support Levels
Bitcoin prices recently fell below the true market mean at $77,600 and are now trading below the 50-week Moving Average (MA). Alex Thorn, Head of Research at Galaxy, noted that Bitcoin has only slipped below its 50-week MA twice after reclaiming it as a post-bear bottom. These instances occurred in 2012 and 2019-20. In both cases, Bitcoin did not descend to new weekly lows after slipping below the 50-week MA.
The weekly structure remains bullish following a close above $82,850. The weekly low, which corresponds to the bear market bottom, is at $57,800. Thorn indicated that this level is not at risk based on historical data regarding 50-week MA losses following a recovery from a bear market. While the current momentum is bearish, a price drop to new lows below $57,800 appears unlikely.
However, a price drop below $70,000 is described as feasible in the current market conditions. The $65,000 to $66,000 area would represent a deep discount opportunity for buyers. More losses appeared likely in the coming days, with the swift liquidation cascade making market participants more risk-averse. The reaction of the S&P 500 suggested buyer strength, which could translate into strong crypto demand during the New York session open.
Source: AMBCrypto
