The crypto market experienced a whirlwind of activity over the past weekend as Bitcoin’s retreat from its near-record high of $99,645 triggered widespread liquidations. With over $470 million in positions wiped out in just 24 hours, this marks one of the largest liquidation events in recent months. The intense volatility not only impacted Bitcoin but also rippled through the altcoin market, highlighting the fragility and dynamism of the current crypto landscape.
This correction comes after Bitcoin’s failure to breach the $100,000 milestone on November 24, a level that has become a psychological barrier for traders and investors. In the last 24 hours alone, data from CoinGlass reveals that $470 million worth of crypto positions were liquidated. This includes $352.6 million in long positions and $119.9 million in short positions, underscoring the market’s susceptibility to sudden swings. Bitcoin and Ethereum together accounted for $108.9 million of these liquidations, but the altcoin market bore the brunt of the losses.
Among the hardest-hit altcoins were Dogecoin (DOGE) with $33.1 million liquidated, XRP at $27.6 million, and Stellar (XLM) at $21.6 million. Other notable casualties included Solana, Sandbox, Polkadot, and Cardano, which all experienced significant liquidations as the market corrected.
Interestingly, many of these altcoins had been on an impressive rally just days prior. Stellar, for instance, surged by 50% over two days, and DOGE reached its highest point since May 2021, fueled by renewed speculative interest. This rally, however, left traders overleveraged, setting the stage for the sharp liquidations that followed.
#Bitcoin Short-Term Update 💥#BTC looks strong on higher timeframes.
On the daily, however, some signs suggest a potential pause:
– RSI bearish divergence + overbought territory
– MACD nearing a bearish crossA pullback to the Tenkan 🔴 at around $94,200 could be on the… pic.twitter.com/2Je3gcV5yp
— Titan of Crypto (@Washigorira) November 24, 2024
Bitcoin’s inability to breach the $100,000 level has become a focal point of market discussions. After peaking at $99,645 on November 22, Bitcoin’s price slipped to $97,790 as of November 25. While this 2% drop may seem minor, it underscores the psychological importance of the $100,000 milestone, which continues to elude the market.
Despite the recent dip, Bitcoin’s price is still up 44% since November 5, when Donald Trump’s victory in the U.S. presidential election reignited investor interest in risk assets. This rally has been further bolstered by the Federal Reserve’s decision to maintain low interest rates, making Bitcoin an attractive alternative to traditional financial instruments.
Currently, Bitcoin’s market dominance stands at 56.2%, with the total crypto market cap exceeding $3.46 trillion. This underscores Bitcoin’s continued leadership in the market, even as altcoins occasionally outshine it in terms of percentage gains.
Beyond technical factors, global geopolitical tensions have also played a significant role in shaping recent market movements. Iran’s announcement of potential retaliation against Israel sent shockwaves through financial markets, pushing Bitcoin below $96,000. Altcoins were hit even harder, with Ethereum down 10%, DOGE down 11%, XRP falling 16%, and Cardano declining 14%.
Altcoins in Focus of crypto market: A Surprise Resurgence
While Bitcoin’s retracement has dominated headlines, the altcoin market has quietly staged a comeback, with several tokens posting impressive gains. Industry analyst Miles Deutscher attributes this resurgence to two main factors: the reactivation of dormant traders from the 2020-2021 cycle and the perception of utility tokens trading below fair value.
Despite the recent volatility, many believe the market is entering a period of opportunity. December, in particular, is often viewed as a time of optimism for cryptocurrency. Institutional investors tend to rebalance their portfolios, and retail interest typically surges during the holiday season, creating a favorable environment for growth.
Additionally, the Federal Reserve’s dovish stance on interest rates provides a supportive backdrop for risk assets. With inflation appearing to stabilize, capital may flow back into cryptocurrencies, further fueling market momentum.
The TD Sequential presented a sell signal on the #Bitcoin $BTC 12-hour chart, anticipating a price correction to $91,583 or even $85,610! #BTC needs to close above $100,535 to invalidate the sell signal. pic.twitter.com/rkFYmgCr46
— Ali (@ali_charts) November 23, 2024
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