Last night’s wave of liquidations left plenty of people shaken. Bitcoin plunged to a low of 80,500, while ETH sank to 2,420. $ZEC was down 14% on the day. Across the market, $1.1 billion in positions were liquidated in 24 hours, wiping out 180,000 traders—90% of them long.
But today, the script flipped. Bitcoin climbed all the way back from 80,500 to 82,500, narrowing its losses from -3% to -0.5%; ETH moved back above 2,500; and ZEC bounced more than 10%.
In a nutshell: the positions that were going to blow up have blown up, and those who needed to cut their losses have done so.
The 80,000 level was tested once yesterday and bounced back, showing that real support is there. As long as it doesn’t break below 81,000 again tonight, we can basically confirm a short-term bottom. ETH broke below 2,500 yesterday, then reclaimed it today—the panic selling has mostly run its course.
Leveraged positions have been swept out, weak hands have been shaken out, and market sentiment has shifted from extreme fear to wait-and-see. This is often the beginning of a consolidation bottom, not the eve of another plunge.
But today, the script flipped. Bitcoin climbed all the way back from 80,500 to 82,500, narrowing its losses from -3% to -0.5%; ETH moved back above 2,500; and ZEC bounced more than 10%.
In a nutshell: the positions that were going to blow up have blown up, and those who needed to cut their losses have done so.
The 80,000 level was tested once yesterday and bounced back, showing that real support is there. As long as it doesn’t break below 81,000 again tonight, we can basically confirm a short-term bottom. ETH broke below 2,500 yesterday, then reclaimed it today—the panic selling has mostly run its course.
Leveraged positions have been swept out, weak hands have been shaken out, and market sentiment has shifted from extreme fear to wait-and-see. This is often the beginning of a consolidation bottom, not the eve of another plunge.