The cryptocurrency markets are facing a pullback, suggesting a deceleration in short-term momentum instead of a change in the overall bullish trend. During the recent weekend, the bulls couldn’t increase volatility, resulting in a drop in Bitcoin’s price, which went under $112,000. Despite certain cryptocurrencies dropping below their support levels, Binance Coin has managed to stay above $1,000 and is on the path to reaching a new all-time high.
A research team indicates that a significant factor contributing to the decline may be the liquidation of $230 million in long positions in recent hours. Taking advantage of the opportunity, Metaplanet secured an additional 5,419 BTC, totaling $632.5 million, bringing their overall holdings to 25,555 BTC, worth $2.7 billion.At present, Bitcoin’s Market Cap has soared to $2.24 trillion, exceeding the GDP of numerous countries. As of the latest update, Bitcoin is priced at $112,918, showing a decrease of 2.5 percent over the past 24 hours. The asset varied between $112,209 and $115,901 during the session. The daily trading volume surged to $45.12 billion. Riya Sehgal, a research analyst, noted that the impressive $630 million in liquidations, driven by a 26 percent increase in derivatives open interest, underscores how leveraged traders were taken by surprise. Bitcoin’s struggle to hold the $117,750 mark, she pointed out, underscores the fragile state of the technical indicators.
Recent on-chain data shows that exchanges saw outflows surpassing 420,000 ETH in the past week. ETH was recently seen at $4,206, showing a drop of 6 percent, with intraday price fluctuations between $4,142 and $4,499. Trading volume has skyrocketed to $43.32 billion. “BTC needs to get back above $116,000 to build momentum, with $124,000 serving as the key level for the next upward move, while ETH supporters must protect $4,250 to prevent further declines,” noted Sehgal. “When investors move ETH away from exchanges, it often indicates a reduced readiness to sell, strengthening the case for possible price rises.” Patel stated “As we look forward to the week, key economic indicators like the US initial jobless claims, PMI data, and Jerome Powell’s speech may impact market trends.”
In the altcoin arena, Story stood out as the top performer of the day, enjoying a significant rally of up to 15 percent. Meanwhile, several assets also made their mark, each seeing gains of up to 2 percent. Conversely, Aster, Pump.fun, Pi, Conflux, Curve DAO Token, Sonic, Optimism, Raydium, Celestia, Virtuals Protocol, Arbitrum, FLOKI, and Worldcoin experienced declines of up to 16 percent.