- 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.
Bitcoin, Ether and altcoin liquidation 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
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.