The price of Bitcoin fell back to the end of September when $2.5 billion was withdrawn from the cryptocurrency market in a huge crash
On Dec. 4, Bitcoin (BTC) was trading near $47,000 after a stunning plunge verified bulls’ worst fears, with daily losses of 22%.
The value of cryptocurrency liquidations has surpassed $2.5 billion
As panic set in, traders capitulated and leveraged positions unwound, resulting in $2.5 billion in 24-hour cross-crypto liquidations.
After the move, filbfilb, co-founder of trading platform Decentrader, highlighted in a new synopsis, “$50k is going to remain resistance for a significant amount of time now unless something fantastic happens.”
“Size of dump & distribution likely to mean consolidation into Q1 next year. Moon mission is not dead but some will think cycle over.”
The magnitude of the drop obliterated certain key support levels, including Bitcoin’s $1 trillion asset valuation, which was once a popular long bet.
Concerns about traders’ behavior were there as late as Friday, according to Cointelegraph, as statistics suggested that the market could easily be overleveraged at previous levels approaching $60,000.
With that advantage all but gone, familiar faces remained optimistic, with Cointelegraph contributor Michal van de Poppe hailing the sub-$42,000 surge as a “low.”
He went on to say, “We’re still in a bull market.”
Meanwhile, Bitcoin just avoided an attempt on $40,000 support, which would be a reason to “turn bearish” if it formed weekly resistance, according to analyst TechDev.
“Wait. Relax. The market will disclose itself “He told his Twitter followers about it.
“If cycle bull phase deviates substantially from history, expect any bear phase to do the same.”
Close week below 20W SMA (50.8) ➡️ Concerning
Macro LL on a weekly close (40K) ➡️ Flip bearish
Lose the 2W RSI Floor ➡️ Flip bearish
Wait. Relax. Market will reveal.
If cycle bull phase deviates substantially from history, expect any bear phase to do the same. https://t.co/6smUaIWlKY— TechDev (@TechDev_52) December 4, 2021
On the BTC pair, Ethereum maintains its strength.
On the day, Ether (ETH) provided a modest silver lining, as it approached a rematch of its highest levels since mid-2018.
ETH/BTC bucked the trend to pass 0.0831, losing less than Bitcoin in the dollar crash.
However, all of the top ten cryptocurrencies by market cap were down more than 10% against the US dollar, with Polkadot (DOT) leading the pack with a 21% drop.