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Crypto liquidations see a notable decline, reflecting market volatility and upcoming Federal Reserve policy decisions.
Crypto liquidations have notably increased due to the king of cryptos, Bitcoin (BTC), experiencing price fluctuations. BTCâs price touched an impressive $70k, prompting a flurry of liquidations from long position holders. This activity took place amid several significant events, including the U.S. governmentâs sale of $2 billion worth of Bitcoin and the Federal Reserveâs policy meeting, which market watchers closely monitored for clues about forthcoming monetary policies.
Data from Coinglass disclosed that by the end of July, crypto liquidations amounted to $132 million, with $109.5 million in long positions and $22.74 million in short positions. This shift suggests a market grappling with rapid changes and speculations, leading to heightened trading activities. The insights are crucial as they underline the fragility and speculative nature of crypto investments amid broader economic discussions.
Amid this volatility, Bitcoin and Ethereumâs price actions turned somewhat bearish. CoinMarketCap data showed that BTC traded at $65,980, while Ethereum (ETH) settled at $3,311 after experiencing marginal downturns over 24 hours. Despite these setbacks, future liquidations for these cryptocurrencies depend heavily on specific price thresholds. For BTC, liquidations might spike again if it nears the $70k mark, while for ETH, significant liquidations could occur if it touches $3.45k.
Analyzing BTCâs and ETHâs daily charts reveals interesting insights into their future movements. BTC was testing its 20-day Simple Moving Average (SMA) support, indicating another potential bullish rally if successful. BTCâs Chaikin Money Flow (CMF) also showed bullish trends, although its Relative Strength Index (RSI) favored the bears. In contrast, Ethereum was challenging its resistance level at the 20-day SMA, with both its RSI and CMF indicators pointing towards a possible bullish turn if upward momentum persists.
The recent trends in the crypto market, marked by substantial liquidations and price volatility of major assets like Bitcoin and Ethereum, highlight the complex interplay of market forces and external economic factors. As the Federal Reserveâs policy decisions loom, investors should remain vigilant and informed about potential market shifts and their implications. The financial landscape remains dynamic, offering both opportunities and risks that necessitate strategic insights and prudent investment practices.
The post Bitcoin Liquidation Set to Surge at $70k Amid Market Volatility appeared first on COINOTAG NEWS.
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