Market Collapse- Will $70K Be the Next Support Zone?
Market Collapse– The global market crash has sent shockwaves through the crypto space, pushing Bitcoin’s price down to $74,636, a level not seen since November 9. The total crypto market cap has fallen to $2.34 trillion, reflecting an 11% decrease in just the last seven days. With fear continuing to escalate, investors are now wondering if Bitcoin could break down further towards $70,000.
Bitcoin’s daily chart reveals another failure to surpass local resistance, leading to a 6.19% drop on Sunday. The cryptocurrency closed at $78,342, marking its lowest closing price since early November. Bitcoin’s downward trend has continued, with the coin experiencing a 2.9% intraday drop and hovering around the $74,000 level. This downturn follows a series of market factors, including President Donald Trump’s decision to impose reciprocal tariffs on several countries globally.
Bitcoin’s crucial support zone is identified between $75,600 and $75,462, aligning with the 50% Fibonacci level at $75,538. This area could act as a pivotal point for price recovery. However, as Bitcoin’s price continues to slide, the potential for further declines remains. Technical indicators show significant bearish signals. The MACD and signal lines have crossed negatively, while the histograms continue to show increasing bearish pressure. Additionally, the 50- and 200-day EMA lines are declining, suggesting the possibility of a “death cross” on the daily chart, which could signal further declines.
Bearish Sentiment and Short Positions
A rising bearish sentiment is evident, particularly among crypto whales. According to on-chain analyst DarkFost, whales are increasingly favoring short positions over long ones. The Whale vs. Retail Ratio has dropped to 0.15, indicating growing bearishness among large investors. This sentiment shift has led to an increase in short positions, which now account for 52.62% of the market, as the Long/Short Ratio reaches 0.9004.
The Liquidation Map signals that a drop to $73,187 could trigger a significant liquidation event, wiping out 609.53 BTC in long positions. Bitcoin’s open interest remains at $52.30 billion, showing a minor decrease, but volume has surged by 138%, reaching $149.95 billion.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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