- Bitcoin slips over 4%, trading near $67.8K.
- $119.12M in BTC liquidations hit the market.
The dominant asset, Bitcoin (BTC), is floating over the bear market. It has been trading below $75K over the last few weeks, facing back-to-back rejections amid the recovery attempts. The BTC price has plunged by 4.29% in the last 24 hours. Notably, the asset is in an extreme fear zone as the Fear and Greed Index holds at 12.
As per CoinMarketCap, at the time of writing, Bitcoin traded at around $67,896, with the daily trading volume having plummeted by 17.11%, reaching the $39.33 billion mark. During this timeframe, the market has experienced a 24-hour liquidation of $119.12 million worth of Bitcoin, according to the reporting of the Coinglass data.
Additionally, Ali’s chart shows that the Bitcoin liquidation heatmap has a major cluster of long liquidations around $54K. If BTC falls to that level, more than $70 million in long positions could be wiped out as traders are forced to close their positions. Such liquidations accelerate downward moves because forced selling adds extra pressure to the market. This range acts as a key downside liquidity zone.
If the active loss intensifies and potent bears take control, the BTC price could fall to retest the $67,648 support. An extended correction on the downside triggers the emergence of a death cross and drives the price below $67,429. Assuming the market trend shifts bullish, Bitcoin could move up to the immediate resistance at around $68K. With the formation of the golden cross, the mighty bulls would take the asset’s price higher above the $68,280 zone.
Is Bitcoin Set for a Deeper Pullback Amid the Downtrend?
The Moving Average Convergence Divergence (MACD) line of Bitcoin is below the zero line, and the signal line is above the zero line. It reveals mixed momentum, with the recent price momentum being weaker than the broader average. It shows a transition phase, where the market may consolidate.
Moreover, the Chaikin Money Flow (CMF) indicator positioned at 0.06 displays mild buying pressure in the BTC market. The money is flowing into the asset, hinting at early accumulation, with moderate strength. If it rises further, it increases the bullish interest, and a move back to zero weakens demand.
Bitcoin’s Bull Bear Power (BBP) reading of -2,608.58 points to very strong bearish dominance in the market. It pushes the price below its average level. Also, it reflects intense downward momentum and strong selling activity. Besides, the Relative Strength Index at 40.26 signals bearish sentiment. As it is below the neutral level, it increases the selling pressure. The BTC market is weak but not extremely oversold. If the RSI drops closer to 30, the downtrend could strengthen.
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