Bitcoin (BTC), which traded at $47,000 on December 4, after a sudden crash confirmed bulls worst nightmares, with 22% daily losses.
BTC/USD 1-day candle chart (Bitstamp). Source: TradingView
Crypto liquidations pass $2.5 billion
Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD hit local lows at $41,960 on Bitstamp, its lowest level since Sep. 30, according to TradingView.
Panic set in and leveraged positions were unwound, traders gave up, 24 hour cross-crypto liquidations reaching $2.5 billion
Chart of crypto liquidations. Source: Coinglass
“$50k will be resistance for a decent length of time now, unless stonks at incredible things,” filbfilb (co-founder of trading platform Decentrader), summarized in a new synopsis following the move.
“Size of dump and distribution likely to mean consolidation in Q1 next year. The Moon mission is still alive, but some will consider the end of it.
The magnitude of the plunge wiped out important support levels, including Bitcoin’s $1 trillion asset valuation. This was a popular option for long bets.
Cointelegraph reported that traders were being questioned about their behavior as of Friday. Data showed that the market was easily overleveraged at levels close to $60,000.
With this leverage almost gone, optimism remained among familiar faces, with Michael van de Poppe, a Cointelegraph contributor, announcing the sub-42,000 spike as a bottom.
He said, “We’re still a bull market.”
Bitcoin has meanwhile avoided an attack on $40,000 support. This would have been a reason to “flip bearish”, TechDev analyst said.
“Wait. Relax. He told his Twitter followers that the market would reveal.”
“A bear phase will follow a cycle bull phase that departs significantly from historical precedents. Close week below 20WSMA (50.8). Concerning Macro LL (40K) Flip bearish Drop the 2W RSI Floor Flip Bearish Relax. The market will show you. Market will reveal. https://t.co/6smUaIWlKY
— TechDev (@TechDev_52) December 4, 2021
Ethereum retains its strength on BTC-BTC pair
Ether (ETH), which was nearing a rematch at its highest levels since mid-2018, provided a small silver lining on the day.
Related: Ethereum is ‘about go parabolic against Bitcoin’ as analysts weigh BTC bear case
ETH/BTC lost less than Bitcoin in the crash versus USD, but it bucked the trend and passed 0.0831.
BITSTAMP: ETH/BTC 1-hour candle charts Source: TradingView
The market cap of all the top ten cryptocurrency ranked by market capital was down more than 10% against the U.S. Dollar. However, Polkadot (DOT), with 21%, was the leader.