Crypto liquidations exceed $ 2.5 billion
Data from Cointelegraph Markets Pro and TradingView showed BTC / USD hit a local low of $ 41,960 on Bitstamp – its lowest since September 30.
As panic set in, leveraged positions unwound and traders capitulated, with 24-hour cross-liquidations exceeding $ 2.5 billion.
“$ 50,000 is likely to be resistance for a while now, unless it’s incredible stuff,” filbfilb, co-founder of the Decentrader trading platform, résumé in a new synopsis after the move.
“The size of the dump and distribution should mean consolidation in the first quarter of next year. The lunar mission is not dead, but some will reflect on the cycle. “
The magnitude of the decline has erased some important support levels, including the valuation of Bitcoin’s $ 1,000 billion assets – previously a popular choice for long bets.
As Cointelegraph reported, concern over trader behavior was present as late as Friday, as data showed the market could easily be over-leveraged at previous levels closer to $ 60,000.
With that leverage now nearly exhausted, the optimism among familiar faces has remained, with Cointelegraph contributor Michaël van de Poppe announcing the peak of less than $ 42,000 as a “bottom”.
“We are still in a bull market,” he said added.
Meanwhile, Bitcoin just avoided an attack on $ 40,000 support, which would be a reason to “turn down” if it forms weekly resistance, analyst TechDev said.
” Wait. Relax. The market will reveal, ”he said. Recount Twitter followers.
“If the bullish phase of the cycle deviates significantly from history, expect any bearish phase to do the same. “
Weekly closing below 20W SMA (50.8) ➡️ Regarding
LL macro at weekly close (40K) ➡️ Bearish return
Lose the 2W RSI Floor ➡️ Bearish Flip
Wait. Relax. The market will reveal itself.
If the bullish phase of the cycle deviates significantly from history, expect any bearish phase to do the same. https://t.co/6smUaIWlKY
– TechDev (@TechDev_52) December 4, 2021
Ethereum preserves the strength of the BTC pair
A small silver lining came from Ether (ETH) on that day, which approached revenge from its highest levels since mid-2018.
Related: Ethereum ‘About To Go Parabolic’ Against Bitcoin As Analysts Assess BTC Bear Case
Losing less than Bitcoin in the crash against the dollar, ETH / BTC reversed the trend to break above 0.0831.
All the top ten cryptocurrencies by market cap, however, fell more than 10% against the US dollar, led by Polkadot (DOT) with 21%.