Bitcoin shook the entire market today. BTC fell more than 6.6% to $68,850, its lowest level since August. In just 48 hours, over $150 billion was wiped out from the crypto market.
What Happened Today?
Bitcoin broke the key support of $73,000 and crashed straight to a low of $67,555. Ethereum also dropped to $1,912, while XRP fell by up to 6%.
More than $1.3 billion in crypto futures were liquidated in 24 hours, out of which Bitcoin alone accounted for $677 million.
The Crypto Fear & Greed Index is now at 20, which is in the Extreme Fear zone. This is the lowest level in the last 4 months.
4 Major Reasons Behind The Crash
1. Nvidia Shock: Nvidia CEO Jensen Huang suddenly resigned. After this news, Nvidia shares fell up to 12% and the entire tech market was shaken.
2. ETF Outflows: US Spot Bitcoin ETFs saw outflows of $1.44 billion in 5 consecutive days. BlackRock's IBIT alone saw outflows of more than $2 billion in 9 days.
3. Fear of Fed Rate Hike: October inflation came in hotter than expected. Now the market fears the Fed may hike rates again in December. The 10-Year US Treasury Yield has reached 5.14%.
4. MSCI Removes Strategy: MSCI announced it will remove Strategy (MSTR) from its index on 30 November. This has created fear of $2.8 billion to $8.8 billion in selling.
What Is Important For Traders?
Bitcoin's RSI is now at 29, which means the market is oversold. A small bounce often comes from this level, but the trend is still down.
Important Levels:
Support: $68,000 - $67,500 - $65,000
Resistance: $71,000 - $73,000 - $75,600
If Bitcoin does not close back above $71,000, the next target could be $65,000. And if $73,000 is reclaimed, a bounce to $75,600 is possible.
Conclusion:
Today was a panic day, but smart traders do not trade in panic. Avoid high leverage, always use a Stop Loss, and watch the $68,000 level carefully. This level will decide whether the market bounces from here or goes further down.
Disclaimer: This article is for information only, not financial advice. Trading involves risk, do your own research.