It seems like the market is in a dangerous freefall! Amidst the long-awaited Mt. Gox repayments and Germany’s sale of seized BTC, the crypto market is steeped in negative sentiment. The 4-hour RSI chart plummeted to a low of 17.88 as trading opened in Asian countries, signaling a troubling outlook.
This level of fear and uncertainty is palpable, making traders extremely cautious.
Read on to navigate the charts, understand the fear, and see if there’s opportunity amidst the chaos.
The Fibonacci retracement shows resistance at the $56,000 level, and it’s not the only hurdle. There’s significant resistance at the $59,000, $61,000, and $63,800 zones, making any recovery seem like an uphill battle.
Liquidation Data
In the last 24 hours, over 230,000 traders have faced liquidations totaling $654.70 million, according to Coinglass data. The largest single liquidation occurred on Binance, where an ETH/USDT long position worth $18.48 million was wiped out. BTC alone saw $204.52 million in long positions liquidated as the market dropped from $58,625 to $53,779.
BTC has been on a continuous downward spiral since it flashed an Evening Star at its peak price of $63,834. Despite minor recoveries along the way, it couldn’t stop the plunge to $53,779 – a steep 15.50% fall. Bitcoin has shown a 4.79% recovery from the ground support of $53,900 to $55,900, but it’s still struggling to break the resistance, facing rejection and falling back to $55,000.
As per the trend, if the price fails to hold at this level, there is a high chance it will tumble down to $48,500. The current support level is an old zone created three years ago in 2021 when BTC soared to $68,000.
This period is marked by ups and downs for Bitcoin and its investors, influenced by external factors like the Mt. Gox repayments and the sale of seized BTC by the German government. These external factors have added layers of complexity and anxiety to the market, creating a perfect storm of uncertainty.
The crypto market is notorious for its volatility, and events like these only add fuel to the fire. Traders need to stay informed and vigilant. With the market in turmoil, it’s crucial to stay ready for whatever comes next. This rollercoaster ride might seem terrifying, but it’s also an opportunity for those who can navigate the waves of the crypto ocean.
Strategies for Survival
There are a few key strategies investors must understand and follow. Keeping a close eye on the charts, watching for key resistance levels, and preparing for sudden drops can be lifesaving.
The crypto world is unpredictable, but with the right strategies and a keen sense of the market, you can turn the tide in your favor.
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