Bitcoin price slips as crypto liquidations rise

Bitcoin price fell from the key $100,000 level and continued to decline on Tuesday, dropping to approximately $96,500. If BTC price declines, support can be found at $90,800, while resistance may be encountered at the recent all-time high of $104,446. 

Ethereum extended losses on Tuesday, dropping to $3,630. If Ethereum's price declines, it may encounter support near $3,250, while if it increases, resistance may be encountered near $4,080.

Bitcoin price has been attempting to go through the key $100,000 barrier for the past few weeks. Bitcoin price rose above the $100,000 milestone last week for the first time in history, registering a new all-time high of $104,446. Bitcoin lost its upward momentum this week, however, as many traders rushed to sell at record-high prices. A massive sell-off was triggered, which continued on Tuesday, as many traders rushed to close their positions. Bitcoin suffered its biggest liquidation since 2021 this week and crypto market liquidation came in at almost $2 billion.

Reports that Trump plans to appoint Paul Atkins as the new Chair of the Securities and Exchange Commission (SEC) boosted crypto markets last week. Atkins is currently the CEO at Patomak Global Partners and has served as SEC commissioner in the past. Atkins’ appointment raised market expectations of less stringent legislation for cryptocurrencies, propping up crypto markets.

US President-elect Donald Trump has openly declared his support of crypto markets, announcing that he will make the US ‘the crypto capital of the planet’. Growing expectations that the new government will adopt a pro-crypto regulatory and fiscal policy have been boosting crypto markets, especially since Donald Trump announced plans to accumulate a national Bitcoin stockpile. 

Geopolitical concerns are promoting a risk aversion sentiment, however, lowering the appeal of high-risk assets such as cryptocurrencies. A 60-day ceasefire between Israel and Lebanon has been officially declared. Reports, however, that Israel has been repeatedly violating the ceasefire, lowered risk sentiment last week. Meanwhile, the civil war in Syria was rekindled last week, further destabilizing the region.

Cryptocurrency prices are also affected by central banks’ interest rates. High interest rates are restricting economic growth, putting pressure on risk assets, while the promise of rate cuts boosts crypto markets. Market odds of a December rate cut rose to 90% after the release of robust US labor data on Friday, propping up cryptocurrencies. 

BTC/USD 1h Chart

ETH/USD 1h Chart

TRADE CRYPTO

The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.

Written by:
Myrsini Giannouli

Share the article: