Bitcoin bleeds close to $60,000, further decline could liquidate over $1 billion
|- Bitcoin extends losses on Saturday, dips closer to psychological support at $60,000.
- BTC price decline under the support level could usher over $1 billion in liquidations, per Coinglass data.
- Crypto fear and greed index goes from fear to greed, back to fear within two weeks as Bitcoin struggles near key support.
Bitcoin, the largest cryptocurrency by market capitalization, is in a state of decline. If Bitcoin slips under $60,000, it would usher over $1 billion in liquidations per Coinglass data.
Ethereum, Solana, XRP, Dogecoin and other cryptocurrencies extended their losses early on Saturday.
Bitcoin could slip under $60,000 psychological support
Bitcoin is at risk of decline under key support at $60,000. A dip under this level could usher mass liquidation in the derivatives market. Coinglass data shows nearly $75 million in derivatives positions were liquidated in Bitcoin in the past 24 hours.
The liquidation heatmap on Coinglass shows that over $1 billion in derivatives position are at risk of liquidation when Bitcoin drops under $60,000.
Samson Mow, developer of AquaBitcoin, and crypto analyst notes that Bitcoin is temporarily being dragged down by the traditional finance market. The effect of the decline has likely been amplified by ETFs.
#Bitcoin is just being dragged down temporarily by TradFi markets - amplified because of increased surface area due to ETFs. But with M2 on the rise again it feels like the main event is almost here. ♎️ pic.twitter.com/uecfBUnD5D
— Samson Mow (@Excellion) August 3, 2024
#Bitcoin is just being dragged down temporarily by TradFi markets - amplified because of increased surface area due to ETFs. But with M2 on the rise again it feels like the main event is almost here. ♎️ pic.twitter.com/uecfBUnD5D
— Samson Mow (@Excellion) August 3, 2024
The sentiment of traders has shifted from fear to greed back to fear within a period of two weeks as Bitcoin price action turns choppy.
At the time of writing, Bitcoin trades at $60,643 on Binance.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.