Why Did Crypto Just Dropped? Bitcoin Broke Key Resistance Level
Bitcoin just broke key resistance and crashed, right after the $1.7 billion total crypto liquidation four days ago, followed by another crypto liquidation clocking at $1.12 billion.
However, ETH is leading the liquidation numbers with $425M long liquidations over the $272M BTC. More than 250.000 traders were liquidated, with the largest single liquidation happening on Hyperliquid, an ETH-USD pair with a value of $29.12 million.
Is this going to be the bottom that traders are looking for in October, or is this the start of the bear market?
Let’s find out.
(Source – Coinglass)
Bitcoin Crash or Generational Entry?
Bitcoin was rejected from the $114K level, baiting many longs into the trap. Longs were liquidated by more than 10 folds the shorts. The BTC price was dumped straight below the POC level of the Volume Profile indicator, sending the whole altcoin market even deeper.
Right now, the RSI indicator is flashing bullish divergence, with BTC price stopping at the bottom line of the VP indicator and finding support in the $108K-$110K price level. Many traders see this as an entry point for the upcoming month, especially with the upcoming rate cut that could potentially send Bitcoin higher.
(Source – TradingView)
On a daily timeframe, we can see a place of interest that aligns with the $108K-$110K zone. However, if that doesn’t hold, we could expect Bitcoin to crash once again, this time taking us even deeper.
That would send BTC to retest the 200 SMA (Smoothed Moving Average) and possibly test the overall bull market trend. Right now, if buyers step in, we can see a strong V-shaped reversal, meaning we are ready for another leg up.
(Source – TradingView)
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Key Takeaways
Bitcoin crash to $108.800 tottalling $1.12Bn in liquidations.
10 times more longs were just liquidated than shorts.
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