- Bitcoin plummeted past the $60,000 and $56,000 levels, which had been staunch support zones in recent months
- Sentiment has been extremely bearish, and long-term investors may want to wait a few days before looking to “buy the blood.”
Bitcoin [BTC] fell 24% in a week, falling from $70,000 to $53.1,000 since July 29, as bulls failed to defend the Fibonacci retracement level at $56,000.
$880 million has been received in the past 24 hours crypto liquidations.
The largest of these was a $27 million BTC/USD long position on Huobi. The panic has had a firm grip on the market, and investors may want to wait for the muddy waters to calm down before making any purchases.
Bitcoin prices under $50,000 are here
Source: BTC/USDT on TradingView
News of Japan’s interest rate hike raised fears of a repeat of the 2008 market crash. This news likely catalyzed the recent losses, but is not entirely responsible.
At the time of writing, the Monday opening in New York had not yet arrived at the traditional markets.
The New York trading session could intensify selling pressure and push prices lower. The CMF recorded -0.14, signaling significant capital outflows.
The MACD formed a bearish crossover on the daily chart and dipped below zero.
The 78.6% Fibonacci retracement level at $46.1k is the next target for Bitcoin. Trading volume was high and volatility in the lower time frame was high. Traders may want to stay on the sidelines.
Exploring the next liquidation cluster
The six-month lookback period showed a concentration of liquidation levels in the $50,000 area. They have been building up since June and were reinforced in July.
In early July, the $54,000 liquidity pocket saw Bitcoin cross the zone and then begin a bullish reversal. Investors would hope a similar scenario occurs at $50,000.
In the North, the notable liquidation target was $73,000, close to an all-time high.
Read Bitcoin’s [BTC] Price forecast 2024-25
Market sentiment has been devastated, and the proof of that is Intel’s CEO Post scripture on social media. ATHs seem like an eternity away.
Bitcoin has been through worse in the past and has still found a way to recover, investors would pray.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.