Cryptocurrency market sees $500 million in liquidations, wiping out $10 billion in value

From Investing.com

October 2, 2024 08:30 AM:

October started off as Uptober but quickly turned into Rektober for the cryptocurrency market. A sudden collapse wiped out $10 billion in market value, with over $500 million in liquidations. Assets like ETH and BTC suffered the most, with liquidations totaling $109 million and $140 million respectively.

The Bitcoin price chart shows a sharp rejection from resistance at $64,000, leading to a drop to just over $61,000. Expectations of a bullish trend in October were shattered, with the market misjudging the traditionally profitable month.

Bitcoin is now at a critical point, testing its support levels. A break above $60,000 could lead to further declines, with liquidation data indicating many overly leveraged long positions being wiped out.

Traders anticipated a bullish October, resulting in a surge of long positions. However, the quick reversal and high liquidation numbers are now putting pressure on the market. Long positions have been the main source of liquidations, reflecting widespread hopes for an Uptober rally.

Bitcoin’s ability to rise above crucial support levels will determine its future trajectory. The market needs to stabilize after the liquidation shock, with a potential late rally hinging on recovery and stability. To prevent a deeper retracement, Bitcoin must stay above $60,000.

Read more at Investing.com: $500,000,000 in Crypto Market Liquidations By U.Today