Bitcoin bleeds close to $60,000, further decline could liquidate over $1 billion
- Bitcoin extends losses on Saturday, dips closer to psychological support at $60,000.
- BTC price decline under the support level could usher over $1 billion in liquidations, per Coinglass data.
- Crypto fear and greed index goes from fear to greed, back to fear within two weeks as Bitcoin struggles near key support.
Bitcoin, the largest cryptocurrency by market capitalization, is in a state of decline. If Bitcoin slips under $60,000, it would usher over $1 billion in liquidations per Coinglass data.
Ethereum, Solana, XRP, Dogecoin and other cryptocurrencies extended their losses early on Saturday.
Bitcoin could slip under $60,000 psychological support
Bitcoin is at risk of decline under key support at $60,000. A dip under this level could usher mass liquidation in the derivatives market. Coinglass data shows nearly $75 million in derivatives positions were liquidated in Bitcoin in the past 24 hours.
The liquidation heatmap on Coinglass shows that over $1 billion in derivatives position are at risk of liquidation when Bitcoin drops under $60,000.
Samson Mow, developer of AquaBitcoin, and crypto analyst notes that Bitcoin is temporarily being dragged down by the traditional finance market. The effect of the decline has likely been amplified by ETFs.
#Bitcoin is just being dragged down temporarily by TradFi markets - amplified because of increased surface area due to ETFs. But with M2 on the rise again it feels like the main event is almost here. ♎️ pic.twitter.com/uecfBUnD5D
— Samson Mow (@Excellion) August 3, 2024
The sentiment of traders has shifted from fear to greed back to fear within a period of two weeks as Bitcoin price action turns choppy.
At the time of writing, Bitcoin trades at $60,643 on Binance.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
