Hold onto your hats, folks! The crypto market has turned into a wild rollercoaster, leaving traders in a tizzy and swallowing up $2.23 billion in liquidations over the past 24 hours. This thrilling ride was sparked by an announcement from none other than the ex-Prez, Donald Trump, about slapping tariffs on imported goods, causing a frenzy of risk asset sell-offs.
According to CoinGlass, a whopping 730,836 traders found themselves in a pickle, with long positions taking the brunt of the beating, accounting for approximately $1.88 billion of the total wipeout. Short positions were no slouches either, with $358 million in losses. The biggest single liquidation order? An ETH/BTC trade worth $25.64 million on Binance, leaving someone’s head spinning, no doubt!
Liquidations happen when exchanges unceremoniously close traders’ positions due to massive losses or insufficient collateral. This here wave of forced closures is a clear sign of market volatility, especially with geopolitical jitters in the air.
Bitcoin: A Tale of Two Extremes
Bitcoin (BTC) took a nosedive, plummeting by 6.5% in just one day, bottoming out at $92,500 before bouncing back ever so slightly to $94,120. The granddaddy of crypto now has a market cap of $1.86 trillion, reflecting a 6% decline that would make any bear grin from ear to ear.
The Relative Strength Index (RSI) on the 4-hour BTC chart is sitting pretty at 21.21, which is deep in the oversold territory (below 30). This means selling pressure is intense, and we might see a short-term recovery if buying interest rears its head again. But don’t hold your breath!
The Moving Average Convergence Divergence (MACD) indicator is painting a bearish picture, too. The MACD line is lingering below the signal line, with negative histogram bars growing wider by the minute. This bearish crossover is a clear sign of weakening market morale.
Support levels are at $92,500, with the next major one at $90,000. If Bitcoin can’t hold onto $92,500, it might test $90,000 as the next big support. And let’s not forget that on-chain options market on Derive.xyz, which predicts a 22% chance of BTC prices dropping to $75,000 by the end of March. Yikes!
Resistance levels are at $96,000, with a critical one at $98,500. Breaking through those levels is crucial for any meaningful recovery. So, buckle up, Bitcoin fans!
The Crypto Market: A Herd of Panicky Animals
Ether (ETH), the second-largest cryptocurrency by market cap, got clobbered harder than Bitcoin, plunging 20% to $2,520 at the time of writing. It lost its vital $2,750 support, while the broader crypto market saw its global market cap shrivel up by 10% to $3.07 trillion.
The Crypto Fear and Greed Index flipped to 44, showing fear, a stark contrast from the weekend’s greedy levels. But amidst the chaos, some analysts are telling investors to keep their cool and view this downturn as a chance to “buy the dip.” We’ll see about that!
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2025-02-03 11:19