crypto Market Cap Takes a 18% Hit, Liquidations Rampant
The aftermath of these massive sell-offs reverberated across the global crypto market, precipitating a significant plummet, with the aggregate market valuation retracting by over 18.06% to lodge at $1.77 trillion in the past day. This tailspin ushered in double-digit losses across numerous alternative cryptocurrencies.
In tandem, the trading platform CoinGlass observed a surge in trader liquidations, surpassing 309,000 individuals, with total liquidations mushrooming to $1.24 billion within the same interval. A staggering single liquidation order worth $27.00 million was executed on Huobi, emphasizing the high stakes involved.
Conversely, BTC and the global market's trading volume suggest an alternative narrative, showcasing surges of 218.41% and 233.44%, respectively. This demonstrates continuous trading activity and investor engagement, even amidst prevailing sell-offs and market turmoil.
bitcoin Breaches Descending Wedge Pattern
A meticulous observation of bitcoin's trajectory since mid-March reveals its movement within a descending broadening wedge pattern, characterized by successive lower highs and lower lows. This pattern typically denotes a consolidation phase, setting the stage for an anticipated upward breakout.
Yet, today witnessed bitcoin's price diving beneath the wedge's lower trendline, hinting at possible further declines in the coming week unless bulls rally to propel the price over the trendline anew.
Intensifying the bearish panorama, the 50-day moving average teeters on the brink of crossing beneath the 200-day moving average, cultivating a 'death cross.' This ominous technical indicator often heralds subsequent price depreciations, exacerbating market uncertainty and apprehension.
Can Bulls Salvage the $52K Wedge Support?
On a more optimistic note, the resilience of bulls to defend the descending broadening wedge pattern’s lower trendline, currently hugging the $52K marker, warrants close scrutiny. A bearish intraday candlestick’s closure above this line could spark a potential bear trap scenario, laying the groundwork for a short-term reversal pattern.
This maneuver could catapult bitcoin to an intraday zenith of around $60K, aspiring to revisit its proximate high at $65.6K, last witnessed on August 1. This elevation could represent a 20% surge from its present valuation.
Nevertheless, should bitcoin falter beneath the wedge’s lower trendline, buoyed by robust trading volumes, it could see its valuation dip to the $48K mark for potential support. A breach of this stronghold could exacerbate the selling frenzy, possibly dragging BTC’s worth down to the $40,000 vicinity, where buyers might eye entry points near the significant January swing low.
As the crypto landscape navigates through these turbulent waters, the resilience of bitcoin and the broader market remains under a microscope, presenting a critical juncture that could either make or mar the future trajectory of the digital asset realm.
