The Bitcoin funding rate and 3-month annualized basis rates are moving to levels that signal to traders it may just be the “calm before the storm.”
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XRP, SOL, and DOGE open interest falls combined 51% in the last month
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Bitcoin Price Faces Threat As Analyst Foresees $55 Million Liquidation
According to data from CoinMarketCap, Bitcoin (BTC) has maintained its upward price trajectory over the last day, gaining by 4.04% to briefly trade above the $48,000 mark. As BTC now hovers around the $47,100 price zone, investors and market experts remain highly speculative about the token’s next action. On that note, popular analyst Ali Martinez has called a major prediction that could spell weighty losses for many investors.
Liquidity Hunters Target $45,810 In Potential Bitcoin Price Manipulation Plot
In an X post on Friday, Martinez predicted an incoming dip in Bitcoin’s price driven by a planned liquidation. Using data from the cryptocurrency futures trading platform, CoinGlass, the analyst stated the Bitcoin liquidation heatmap indicated that there is potential strategic liquidation in play.
According to the #Bitcoin liquidation heatmap, there’s a potential strategy unfolding where liquidity hunters could drive the price of $BTC down to $45,810. This move is aimed at triggering liquidations amounting to $54.73 million! pic.twitter.com/monFlZmvQ6
— Ali (@ali_charts) February 9, 2024
Martinez stated that liquidity hunters in the BTC market could be looking to push the token’s price as low as $45,810 for personal benefits. For context, liquidity hunters are traders or investors who actively seek opportunities in the financial markets to exploit changes in liquidity.
This set of market players often targets specific price levels where there is a concentration of stop-loss orders or where market liquidity is expected to be thin. By triggering liquidations or capitalizing on price movements, liquidity hunters aim to profit from short-term market inefficiencies.
According to Martinez, the liquidity hunters in the BTC market are currently looking to induce an estimated 3% decline in the token’s price. While this change may seem minimal, it represents an astounding $54.73 million in liquidations. Based on these numbers, BTC traders and investors should be wary of potentially significant losses in the coming days.
BTC Price Overview
The premier cryptocurrency has recently taken flight, gaining by 8.6% in the last two days after a flat period of consolidation stretching to the beginning of February. Interestingly, the asset’s pathway to higher gains appears more confident with recent developments in the Bitcoin spot ETF market, which recorded a total net flow of $403 million on February 8 – the highest value of that metric since January 17.
At the time of writing, Bitcoin trades at $47,238, with a 0.26% gain in the last hour. Meanwhile, the coin’s daily trading volume has soared by 56.33% and is now valued at $39.42 billion. In addition, BTC maintains its top spot in the crypto market with a total market cap of $924.67 billion.
BTC trading at $47,229 on the daily chart | Source: BTCUSDT chart on Tradingview.com
BTC, ETH, SOL and Major Altcoins Begin Asia Business Day in Deep Red
Bitcoin and Ether lead in liquidation heatmap with over $335 million in rekt positions in the last 12 hours.
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Tuesday’s sharp decline in crypto prices spurred the largest daily leveraged long liquidation since August, CoinGlass data shows.
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Cryptocurrency derivatives traders endured over $150 million liquidations over the past 24 hours Monday as rapidly surging digital asset prices caught many market participants off-guard.
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Crypto traders suffered over $100 million of losses in liquidations on Monday, Coinglass data shows, as the digital asset market rout intensified.
GBTC’s Discount Narrows Amid Bitcoin’s Downturn, But A Bullish Trend Is Coming?
The Grayscale Bitcoin Trust (GBTC) share price has again made headlines. Its premium or discount to Bitcoin’s net asset value (NAV), often viewed as an indicator of institutional sentiment towards the cryptocurrency, has displayed a notable trend recently, even amid the prevailing bearish atmosphere.
GBTC’s Evolving Price Dynamics
The phenomenon of GBTC’s share price inching closer to Bitcoin’s market price is worth noting. The correlation between the two has been historically significant, with price differences often shedding light on broader market sentiments.
According to data from CoinGlass, a renowned crypto monitoring platform, the GBTC shares were recorded trading at a 17.17% discount to the BTC/USD rate as of September 9th, the last update.
Such levels haven’t been witnessed since December 2021, highlighting a potentially shifting sentiment in the market. The so-called “GBTC Premium,” previously a surplus, has been a discount to the net asset value for a while now.
The shift was drastic at one juncture that the differences neared roughly 50% last November. Such variance has led to a divergence between GBTC’s performance and Bitcoin’s price strength, especially as Bitcoin revisits price zones it hasn’t seen in the past six months.
What This Could Mean For Bitcoin
The narrowing of GBTC’s discount isn’t just an isolated event. It paints a broader picture of potential market sentiment shifts and future movements.
Notably, a shrinking discount can be interpreted as a sign of growing institutional interest, as the GBTC serves as a prominent avenue for institutions to gain exposure to Bitcoin without directly holding the asset. If institutional interest is indeed on the rise, this could bode well for Bitcoin’s mid to long-term price outlook.
Nevertheless, Bitcoin is currently seeing a downtrend. The asset has plunged nearly 15% in the past month and 2% in the last 24 hours. As a result, its price has fallen below the recently established $26,000 mark, trading at $25,175 at the time of writing.
According to Cryptocon, a trader and analyst, Bitcoin might see a weaker performance this month as October often brings a turnaround and more decisive price action.
September is historically a pretty bad month for #Bitcoin, that’s just the facts.
October is historically very bullish.
But maybe, it’s November that will bring the turn around we need according to our performance since the halving dates.
To be… pic.twitter.com/Olg0XHVxKG
— CryptoCon (@CryptoCon_) September 11, 2023
This perspective aligns with a prevalent crypto community theory that marks November 28th as a quadrennial “bull run launch” for Bitcoin.
Featured image from iStock, Chart from TradingView
Levered Bullish Longs Getting Liquidated as Bitcoin Market Softens
CoinGlass data shows that in the last 24 hours, $116.38 million worth of futures bets were liquidated, with $85.68 in bullish long positions.
Sudden Crypto Volatility Spurs $216M in Losses, Liquidating Both Long and Short Positions
Cryptocurrency prices rose early Friday but then dropped sharply following a report that the SEC had deemed recent spot BTC filings inadequate.
Open Interest in Bitcoin Futures Hits Yearly High of $12B
An uptick in open interest alongside a price rally is said to confirm an uptrend.
Crypto Traders Suffer Over $300M of Losses in Liquidations Amid Market Crash
The largest long liquidation in at least a month suggests that Thursday’s crash in crypto prices caught traders off-guard. Bitcoin traders suffered the most losses, some $112 million in the past 24 hours, while ether liquidations surpassed $73 million, per data from Coinglass.
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Report Shows Ethereum Might Take Another Hit, Is It Possible?
Though volatility is a core attribute of cryptocurrency, the swing is quite excessive for Ethereum. The price movement for Ether was progressive from the beginning of the second of the year. ETH gradually surged over the $1,800 level before the Merge.
To some reasonable extent, the positive sentiment surrounding Ethereum’s transition from PoW to PoS contributed to the surge. As a result, several participants in the crypto industry tilted towards the second largest crypto asset by market cap.
The token recorded a huge increase in its trading volume and other Ethereum derivatives over the period.
However, the launch seems to come with a bearish trend for Ethereum. Just some hours following the Merge, ETH started a southward movement.
The increasing selling pressure depleted the value gradually as the price kept decreasing. Through the past weekend, Ether plummeted below $1,300 as it lost sustainability on some supportive levels.
Is Another Ethereum Correction Underway?
There’s a hint for a more bearish pattern from the Ethereum technical chart. This implies the possibility of another correction of 25% from its current price, which hovers around the $1,350 region. So, ETH might dip further to $1,000.
Based on the last report for the US CPI data for August, there’s an indication of a rise in the inflation rate. However, the response from the crypto assets has been very unfavorable.
The FOMC (the Federal Reverse System’s monetary policymaking body) has scheduled its meeting for Wednesday, 21, 2022. But the entire crypto market is already feeling aggressive selling pressure before the outcome of the FOMC meeting.
The analysis of the Ethereum price charts indicates a drastic drop below the token’s standard deviation. On the higher side, the price of ETH could not cross the hurdle at the $1,800 region.
Also, the downtrend shows that Ether went beyond its critical support of $1,340. Hence, the overall technical implication is that the deviation from support levels has the risk of a downtrend.
Ethereum price trends below $1,350 l ETHUSDT on TradingView.com
This is primarily because Ethereum’s deviation is below the regression channel from the lows as of June. The token is now exposed to the third deviation retreat of $1,250. With that, ETH could hit the next possible support level of $1,000.
ETH Derivatives And Liquidations
According to data from Deribit, the number of Ethereum put, and call contracts has skyrocketed. Its open interest ranges between $1,000 and $2,000, with expiration by the end of September. The range could mark the possible trading value for Ether.
There have been more liquidated positions as the price of Ether increases. As of yesterday, the entire crypto market recorded over $400 million in liquidations. At the time of writing, data from Coinglass shows that Ethereum has over $58 million in liquidated positions within the past 24 hours.
Featured image from Pixabay, Chart: TradingView.com
Ethereum price dips below the $1.8K support as bears prepare for Friday’s $1B options expiry
Looming macroeconomic concerns and this week’s $1B ETH options expiry threaten to pin Ethereum price under the $1,800 support.
