Monday, July 11, Bitcoin continues to shed in a “Monday effect” after a turbulent start off in July. At press time, the pioneer cryptocurrency is trading at $41,053, down 3.37% in the past 24 hours and 14.86% in the past two weeks.
On the other hand, Ethereum, the second-largest cryptocurrency by market cap, is down 6.21% in the past 24 hours and is trading at $3,055 after losing the support of an ascending support trendline at $3,200(on the 4-hour timeframe) and horizontal support at $3,155 support.
Other smaller cryptocurrencies have taken the biggest hit, with those in the top ten like Avalanche (AVAX), Terra(LUNA), Cardano(ADA), Ripple(XRP) and Solana(SOL) giving back 8.54%,7.66%,6.03%, 5.79% and 5.24% in the past 24 hours respectively.
According to data from Coinglass, a cryptocurrency futures trading & information platform, over $320M has been liquidated from the entire crypto market in the past 24 hours, with 112,024 long positions being closed indefinitely. During that time, the single most significant liquidation order happened on Bitmex, where XBT, valued at $10 million, got liquidated.
Apart from Bitcoin, Ethereum and Solana have been the biggest losers; respectively, Doge comes in fourth with 26.16 million Doge or $3.68m being liquidated. With major news of the possible integration of DOGE with Twitter and Tesla for payments coming out over the weekend, the meme coin has seen an influx in buy orders which partially explains the massive liquidations.
Luna, the native token for Terra, is the fifth-biggest liquidated asset. With the Luna Guard Foundation’s(LFG) continued aggressive purchases of BTC to back Terra’s algorithmic stable coin UST, Luna has been the primary beneficiary. Earlier this month, the coins ran up to tap new highs after Do Kwon, the 30-year-old founder of Terraform Labs, announced plans to purchase $10B worth of BTC. Since tapping an ATH of $118, LUNA has been in free fall, and today, those losses were mirrored in the wake of BTC nosediving.
According to a report by Deloitte, the ongoing war between Russia and Ukraine has weakened the global supply chains, with oil and agricultural products coming under intense stress. It has sent shockwaves to derivative markets, with losses also being mirrored in cryptocurrencies. The FED has also been blamed for the ongoing onslaught, with its plan to tame inflation increasingly being seen as bungled, exacerbating investors’ uncertainty.
Bitcoin, which now seems to have gone back into a larger squeeze pattern identified as a bear flag by Gareth Soloway, chief market strategist of InTheMoneyStocks.com, could spell peril to the market if it is to unfold.
However, the price needs to break lower, out of the parallel lines, for the pattern to be confirmed, for who knows what Bitcoin could do?
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