Bitcoin Crashes Below $60K Amid +$900 Billion Single-Day Liquidation
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Bitcoin (BTC) and most of the cryptocurrency market suffered a massive blow yesterday, with the market capitalization losing over $150 billion in a few hours. This drop caused the liquidation of close to $1 billion worth of long and short positions.
This decline came amid Bitcoin’s dip below the $60K psychological support and tested the $58.1K level. This decline dragged most of the market along, with many altcoins recording double-digit drops. However, Shiba Inu (SHIB), Aave (AAVE), and 1inch (1INCH) were among the few exceptions to the dip. These coins acted the opposite of the broader market.
The recent market crash caused a long streak of long positions to get liquidated. According to reports, about $950 billion worth of trading positions got liquidated (88% long positions).
Meanwhile, the recent correction comes as no surprise to some as reports recently cautioned that the average leverage ratio had entered elevated levels, likewise the funding rate. Both indications showed that a “flush-out” could occur soon, which was what transpired.
That said, Ethereum longs suffered the most liquidation, with ETH only a few points away from its previous all-time high when the crash occurred. Also, most of the liquidations occurred on Binance (36%), followed by Bitfinex (23%) and OKEx (13.5%).
Key Bitcoin Levels to Watch — October 28
BTC appears to have steadied its descent above the $58K support and currently trades at $59.2K, +1% intraday. As long as bulls hold their ground above the upper-$58K area today, the benchmark cryptocurrency should resume on an upwards journey towards $61K over the coming days.
However, a break below the $58Ks could trigger another selloff into the $56K -$54K consolidation zone. Nonetheless, my daily MACD indicator shows that the price has retreated fairly from overheated conditions.
Meanwhile, my resistance levels are at $60,000, $61,000, and $61,785, and my key support levels are at $58,000, $57,500, and $56,700.
Total Market Capitalization: $2.48 trillion
Bitcoin Market Capitalization: $1.11 trillion
Bitcoin Dominance: 44.9%
Market Rank: #1
