Bitcoin (BTC) has seen another short-term spike as an indicator of market volatility. Then, it has lost about 7.5% in the last 24 and settled below $39,000. Twitter analyst, nicknamed CryptoCapo, known as the altcoin oracle, says the main target is $21-23k…
Bitcoin sees massive liquidation during the day
The market drop was accompanied by some pain for futures traders. According to data from Coinglass, Bitcoin futures liquidations in the last 24 hours exceeded $81 million. And within an hour of the day, nearly $55.81 million was liquidated. Bitcoin market action has almost reset the price and market cap to previous day levels. Yesterday, Bitcoin rose nearly 10% to hit an intraday high of around 42,300. The market value also took back the levels of $ 800 billion.
Yesterday’s price action followed the bullish news that the White House is pushing to encourage “responsible development” in the cryptocurrency space, as quoted by Cryptokoin.com. However, with today’s drop, Bitcoin’s market cap has returned to $744 billion. Price action seems to have been predicted by a few technical analysts who were not fooled by the market enthusiasm.
Bitcoin analysts are in no hurry to raise bull flags
Market analyst “CryptoCapo” stated that despite the bounce above $40,000, the market still has a bearish structure. In a recent Twitter post, Capo shared the levels he expects below $30,000:
Despite the bounce of over 40k in BTC, the price is still between $33,000 and $45,000. The bear structure is intact. Main resistance: $45-46k. Main target: 21-23 thousand dollars.
Similarly, “AltCryptoGems” has over 160k followers of Bitcoin. He said that if the price cannot break the resistance around $42,800, it may drop to $37,200:
In Bitcoin, we are currently trying to break the first resistance around $42.8k. If successful, the next target to break looks like $45.3k. If we fail, we could drop to $37.2k as the support line.
How did the rest of the market trade?
Similar to Bitcoin, the altcoin market has also seen a downside correction. The global crypto market cap is $1.48 trillion, down 4.60% from the last day.
The largest altcoin projects are all trading in the red, including Ethereum, BNB, XRP and Terra. Ethereum, the number two coin, is down 5.56% and is currently trading around $2,600. However, the long-term bullish outlook for the crypto market remains intact among market participants. Bitwise CEO Matt Hougan told CNBC news that he expects Biden’s crypto order to spark a new bull market.
