Bitcoin and Altcoins Liquidation Spike
Analysis by CoinGlass indicates a significant surge in liquidations, with total losses reaching over $221 million. This spike, up from $72 million the previous day, marks the largest increase since August 27 when liquidations hit $281 million.
Market Turmoil and Safe Haven Assets
Bitcoin, Ethereum, and other cryptocurrencies faced a sharp decline as investors shifted from risky assets to safer havens. This trend was reflected in major indices like the Nasdaq 100 and the Russell 2000, which experienced substantial drops.
Market Sentiment and Institutional Demand
Fear in the market, as shown by the fear and greed index dipping to 30, could lead to further declines in Bitcoin and altcoin prices. Additionally, weak institutional demand is visible through outflows in Bitcoin and Ether ETFs, along with a persistent decrease in futures open interest.
Technical Indicators and Potential Patterns
Bitcoin’s price chart and technical indicators suggest the formation of a potential death cross pattern, raising concerns about a further price drop. With Bitcoin moving below key Fibonacci retracement levels, there is a possibility of more downside pressure affecting other altcoins in the market.
