A total of $2.5 billion has been liquidated in crypto
BTC/USD has hit local lows of $41,960 on Bitstamp according to Cointelegraph Markets Pro and TradingView – its lowest since Sept. 30.
Leveraged positions unwind and traders capitulate as panic sets in, the 24-hour cross-crypto liquidations pass $2.5 billion.
“$50k is likely to be resistance for a decent amount of time now unless stonks to incredible things,” filbfilb, co-founder of trading platform Decentrader, summarized in a fresh synopsis after the move.
“Size of dump & distribution likely to mean consolidation into Q1 next year. Moon mission is not dead but some will think cycle over.”
The scale of the dip wiped out some important support levels including Bitcoin’s $1 trillion asset valuation — previously a popular choice for long bets.
As Cointelegraph reported, concern over traders’ behavior was present as recently as Friday, as data showed that the market could easily be overleveraged at previous levels nearer $60,000.
With that leverage now all but flushed out, optimism among familiar faces remained, with Cointelegraph contributor Michaël van de Poppe announcing the sub-$42,000 spike as a “bottom.”
“We’re still in a bull market,” he added.
Bitcoin, meanwhile, just avoided an attack on $40,000 support, something which would be a reason to “flip bearish” should it form weekly resistance, analyst TechDev said.
“Wait. Relax. Market will reveal,” he told his Twitter followers.
“If cycle bull phase deviates substantially from history, expect any bear phase to do the same.”
Close week below 20W SMA (50.8) ➡️ Concerning
Macro LL on a weekly close (40K) ➡️ Flip bearish
Lose the 2W RSI Floor ➡️ Flip bearishWait. Relax. Market will reveal.
If cycle bull phase deviates substantially from history, expect any bear phase to do the same. https://t.co/6smUaIWlKY
— TechDev (@TechDev_52) December 4, 2021
Ethereum maintains its strength on the BTC pair
The only silver lining came from Ether (ETH), which came close to rematching its highest levels since mid-2018.
Related: Ethereum ‘about to go parabolic’ against Bitcoin as analysts weigh BTC bear case
Losing less than Bitcoin in the crash versus the dollar, ETH/BTC bucked the trend to pass 0.0831.
All of the top ten cryptocurrencies by market cap were down over 10% against the U.S. dollar, however, led by Polkadot (DOT) with 21%.