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The crypto markets saw significant turmoil over the past 24 hours, with over 100,000 traders impacted by mass liquidations, greatly raising concerns during the latest market downturn. Bitcoin (BTC) briefly dipped below the $60,000 mark on October 3 before recovering and pushing back above $60,000. The world’s largest cryptocurrency is currently trading just above the $61,000 mark.
Almost all major cryptocurrencies remain in the red today, including Ethereum (ETH), Solana (SOL), Ripple (XRP), Dogecoin (DOGE), and several others. As a result, the crypto market cap declined further and is currently at $2.12 trillion. Additionally, spot Bitcoin ETFs have continued to register significant outflows.
Crypto Market Liquidations Surge
Bitcoin (BTC) is trading just above the $61,000 mark, having registered a substantial decrease from the $65,000 levels of the weekend. The sharp decline in the price of BTC and the overall crypto markets have set off a wave of liquidations, with $295 million worth of positions being closed over the past 24 hours. Out of these, $246 million were in long positions, indicating that traders expected prices to increase, but such a scenario eventually failed to materialize. BTC alone saw almost $45 million in long positions liquidated, with over 10,000 traders facing liquidation.
As a result of the markets taking a turn for the worse, traders flocked to stablecoins to preserve their capital, with major stablecoins registering a surge in volume. Out of the $121 billion in global trading volume, $88.3 billion was concentrated in stablecoins. This indicates that traders are turning to stablecoins to preserve capital as they are less volatile than other cryptocurrencies.
Geopolitical Factors
The escalating Middle East conflict is adding to the volatility in global markets, including crypto. This uncertainty has led to increased trading activity and price fluctuations. It has also brought into focus Bitcoin’s reputation as “digital gold,” which could serve as a hedge against market turmoil in times of uncertain geopolitical situations. Some investors have turned to BTC, while others have pulled back, believing the asset to be too speculative and high risk.
So, what do the mass liquidations mean for the crypto markets? These liquidations are being viewed as a symptom of broader market challenges and volatility driven by macroeconomic events. Traders with leveraged positions were particularly impacted as rapid price movements led to liquidations and losses. While cryptocurrencies have historically been resilient, the current volatility could persist as external factors continue to weigh down investor sentiment.
Binance Market Share Regresses Considerably
Binance, the world’s largest cryptocurrency exchange, has seen its market share drop to 2020 levels as increased competition saw competitors grab a significant chunk of users and trading volume. According to a report from CCData, Binance spot and derivatives trading volume declined by 23% and 21%, respectively, with trading activity on centralized exchanges reporting a decline. Data showed that centralized exchange trading volumes fell by 17% in September, a historically difficult month for trading assets. Binance now has a 27% market share in spot trading and a 40% share in the derivatives market.
Spot Bitcoin ETFs Continue To See Outflows
Spot Bitcoin ETFs continued to see outflows on Thursday, posting outflows worth $54 million. The cumulative outflows over the past three days have now risen to $388 million, pointing to the bearishness of the markets. While ARKB saw significant outflows, BlackRock’s IBIT and Bitwise’s BITB registered inflows. The daily trading volume of spot Bitcoin ETFs also dropped from $1.66 billion to $1.13 billion.
Spot Ethereum ETFs also registered net outflows worth $3.2 million, with Grayscale’s ETHE registering the largest. However, BlackRock’s ETHA stemmed some of the losses with net inflows worth $12 million.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) has slightly recovered after dropping to a low of $59,904 on Thursday, as buyers entered the market at the $60,000 level. Markets have seen mass liquidations that have taken their toll on investors, as market watchers hope BTC can close a hugely bearish week on a positive note. As we can see in the price chart, BTC pushed above $66,000 on Saturday, reaching a day high of $66,271. However, it faced strong resistance at this level and fell back into the red on Sunday, registering a marginal drop and closing a bullish week on a negative note. The current week began with bearish sentiment intensifying as BTC dropped by 3.45%, slipping below $65,000, and the 200-day SMA eventually settled at $63,367.
Source: TradingView
Markets panicked on Tuesday as Middle East tensions escalated, raising the prospects of a regional war. With the situation worsening, markets panicked, and BTC dropped by almost 4%, going below the 20-day SMA and settling at $60,873. Buyers attempted a recovery on Wednesday as BTC rose to a day high of $62,456. However, the 20-day SMA acted as a dynamic resistance level, pushing the price back down. BTC eventually registered a marginal decline and settled at $60,671. BTC has had strong support at $60,000, and with the 50-day SMA also acting as a dynamic level of resistance, it made a marginal recovery as buyers prevented a further decline. Ultimately, BTC rose by 0.22% and settled at $60,804.
The current session sees BTC up by almost 1%, rebounding from the 50-day SMA, with the price currently at $61,414. With the price rebounding from its support level, buyers will look to first push BTC above $62,500 and the 20-day SMA. If they succeed, the next crucial level of resistance is $63,500. Moving above these levels could open the doors for a push to $65,000 and $66,000. However, if sellers retake control and drive BTC below the 50-day SMA and $60,000, we could see the price drop to $57,500 or $55,000.
Ethereum (ETH) Price Analysis
Ethereum (ETH) has been down almost 10% over the past week and an even bigger 12% over the past 48 hours, as adverse market conditions and a failure to push above $2,700 have weighed down the price. ETH’s recent bearish turn has wiped out nearly all of the gains made since September 17, when it rebounded from a low of $2,254. Market watchers are now wondering if ETH can push above $2,700 and what it requires to overturn its bearish outlook. ETH has registered a considerable slump since September 1, while the crypto market cap has jumped by 1.4%. The highly anticipated spot Ethereum ETFs have also disappointed investors after racking up net outflows of over $550 million. Some analysts have attributed ETH’s price decline to selling pressure from Ethereum co-founder Vitalik Buterin and the Ethereum Foundation, while others have pointed to reduced demand for dApps.
Additionally, Ethereum enthusiasts believed in the ultrasound money theory and anticipated ETH to become deflationary. However, this has not occurred, and the coin-issuance rate has turned positive, with Ethereum’s strategic adjustments adversely impacting ETH. As we can see in the price chart, ETH has been highly bearish since the weekend, dropping by 0.73% on Saturday and 0.67% on Sunday to settle at $2,659. Selling pressure escalated on Monday, with ETH dropping just over 2% to settle at $2,603. With markets turning bearish on Tuesday, ETH witnessed significant volatility before dropping almost 6% to slip below $2,500 and the 20 and 50-day SMAs to $2,448.
Source: TradingView
Buyers attempted a recovery on Wednesday but were unsuccessful, as sellers took control and pushed the price down by 3.40%. As a result, ETH fell below $2,400 and settled at $2,365. Thursday saw another round of volatility as buyers attempted to push back above $2,400. However, they were unsuccessful again, and ETH fell by 0.64% to $2,350. The current session sees ETH up by 1.50% as buyers look to reclaim the $2,400 level. If buyers can maintain momentum, they will look to push back to $2,500. On the other hand, if sellers regain control, ETH could drop to $2,300.
Solana (SOL) Price Analysis
Solana (SOL) dipped below $140 on Thursday as it witnessed significant volatility and fell to a day low of $133. As we can see in the price chart, SOL’s recent bullish run peaked at a high of $161. However, the bulls lost momentum from here on as SOL fell back into the red on Monday, starting the week with a drop of almost 4% to slip below the 200-day SMA and settle at $152. With crypto markets turning bearish thanks to the escalating Middle East situation, SOL registered a substantial drop of almost 5% on Tuesday, losing the $150 level and settling at $145, just above the 20-day SMA.
Source: TradingView
SOL slipped below the 20-day SMA on Wednesday after a failed attempt to push above $150. As bulls lost momentum, sellers retook control and pushed SOL down by 3.44%. As a result, SOL slipped below the 20 and 50-day SMAs and settled at $140. Thursday saw volatility increase as sellers attempted to push SOL below $130, while buyers attempted a move past $140. Ultimately, SOL dropped by 2.40% to settle at $136. The current session sees SOL up by almost 3% as buyers look to push SOL back above $140. If SOL can go above the 20 and 50-day SMAs, a move to $150 could become possible. However, buyers must ensure that SOL stays above $130.
Ripple (XRP) Price Analysis
Ripple (XRP) is looking to push back above $0.55 after a highly bearish week that saw the altcoin lose a key support level and slip below the 20, 50, and 200-day SMAs. XRP has spent almost all of the week in the red, starting with a drop of 4.57% on Monday, which saw the price drop from a high of $0.66 to $0.61. Volatility increased on Tuesday as markets reacted to adverse geopolitical factors. XRP eventually dropped by 2.42%, slipping below $0.60 and settling at $0.59. Bearish sentiment intensified considerably on Wednesday as XRP dropped by almost 10%, going below the 20, 50, and 200-day SMAs and the $0.58 support level, settling at $0.53.
Source: TradingView
Buyers attempted a recovery on Thursday but could not push above the 200-day SMA, with sellers eventually assuming control. As a result, XRP dropped by 3.08% to $0.52, but not before hitting a day low of $0.50. The current session sees XRP marginally up as buyers look to keep the price above $0.50 while sellers look to drag it lower.
Dogecoin (DOGE) Price Analysis
Dogecoin (DOGE) has bounced back after witnessing a highly volatile and bearish week, which saw it slump to a low of $0.102. As we can see in the price chart, DOGE was bullish right until the weekend, rising to a day high of $0.132 on Saturday. However, sentiment changed on Sunday as DOGE fell by almost 3%, dropping to $0.124. Bearish sentiment intensified on Monday as DOGE dropped by 8.33% to $0.114, thanks to adverse market conditions. Buyers attempted a recovery on Tuesday as DOGE reached a day high of $0.119. However, with buyers losing steam, sellers could retake control, and as a result, DOGE fell by 6.38%, slipping below the 20-day SMA and settling at $0.107.
Source: TradingView
DOGE saw another attempted recovery on Wednesday but could not push above the 20-day SMA as sellers won out and pushed DOGE down by 2.52% to $0.104. DOGE witnessed considerable volatility on Thursday as buyers and sellers struggled to exert influence on the market. Eventually, DOGE managed a marginal increase and stayed above $0.105. The current session sees DOGE up by almost 3% as buyers look to build momentum and push the price back above $0.110.
Cosmos (ATOM) Price Analysis
Cosmos (ATOM) has also recovered during the current session after a bearish week that saw it slip below the $4.50 level. ATOM turned bearish on Saturday, dropping by 2.22% to $5.02. However, it registered a marginal increase on Sunday to stay above $5, ending the weekend at $5.03. Markets turned bearish on Monday, and ATOM fell 6.01% to $4.73. Buyers attempted a recovery on Tuesday, with the price reaching a day high of $4.91. However, sellers overwhelmed buyers, and ATOM continued to drop, registering a decline of 6.14% to slip below the 20 and 50-day SMAs and the $4.50 support level to $4.44.
Source: TradingView
Wednesday saw significant volatility as buyers attempted to push back above $4.50. However, after reaching a day high of $4.57, ATOM fell back as sellers pushed the price back below $4.50. ATOM eventually declined by 0.15% and settled at $4.43. Sellers attempted to push ATOM below $4 on Thursday as it fell to a low of $4.23. However, buyers countered the selling pressure, and ATOM eventually settled at $4.38 after a decline of 1.19%. The current session sees ATOM up by just over 2% as buyers look to push back above $2.50.
Celestia (TIA) Price Analysis
Celestia (TIA) has substantially recovered during the ongoing session as it looks to end a bearish week on a positive note. TIA had been quite bullish until the previous week but lost momentum after hitting a day high of $6.90 on September 24, thanks to strong resistance at $7. The bearish sentiment intensified over the weekend as TIA registered a drop of 6.24% on Saturday, dropping to $5.99, slipping below a crucial level. Sunday saw TIA experience significant volatility as buyers attempted to reclaim $6. However, after witnessing volatility, TIA managed only a marginal increase to $6.02. However, bearish sentiment took over on Monday as TIA dropped over 8% to $5.53.
Source: TradingView
With adverse market conditions prevailing on Tuesday, TIA declined further, dropping by 8% to slip below $5.50 and the 20-day SMA to $5.08. Buyers attempted a recovery on Wednesday as TIA rose to a day high of $5.52. Still, with the 20-day SMA now acting as a dynamic level of resistance, buyers lost momentum, allowing sellers to take over. As a result, TIA fell below the 50-day SMA and $5 after a drop of 5.12% and settled at $4.82. A further decline of 1.47% on Thursday saw TIA drop to $4.75. Despite the bearish sentiment, TIA has registered a strong recovery during the ongoing session and is up by over 9%, with the price currently at $5.18 and back above the 50-day SMA.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
