Foreign media reports indicate that the cryptocurrency market experienced a significant pullback over the past week, with Bitcoin falling from above $77,000 to around $67,000, resulting in a weekly decline that wiped out over 7% of the overall market capitalization. The article argues that the market is still in a deleveraging phase, and short-term selling pressure has not yet been fully released.
Bitcoin led the decline
The report noted that Bitcoin experienced one of the largest declines in this round of correction, with the price of a single coin falling by more than $10,000, and its market capitalization dropping from approximately $1.50 trillion to $1.34 trillion. The author also mentioned that Strategy's recent sale of 32 BTC is seen as one of the signals of increased caution among institutional investors.
From a technical perspective, the article states that Bitcoin failed to fill the CME gap between $78,000 and $79,000, subsequently falling to the $67,000 range. According to the article, this correction wiped out over $250 billion in market value in less than a week.
Accelerated liquidation of long positions
During market downturns, leveraged funds face more pronounced pressure. The article states that over $700 million in long positions in the crypto derivatives market have been liquidated in the past 24 hours, with $283 million of that occurring within a single hour.
- Long positions liquidated in the past 24 hours: over $700 million.
- Of which, $283 million was cleared within 1 hour.
- Fear & Greed Index: Dropped to 11
The article also mentioned that market volatility rose to 20%, the largest single-day increase in nearly four months; the crypto fear and greed index fell to 11, indicating that market sentiment has entered a state of extreme panic.
Watch for a support level at $67,404.
Regarding future price movements, the article suggests that traders need to reassess their existing long positions. If Bitcoin continues to fall below $67,404, multiple exchanges' order books may be further triggered, potentially amplifying a chain reaction of liquidations.
The article also mentions that the recent increase in scams and Rug Pull incidents is weakening retail investors' risk appetite for the crypto market. The author further suggests that some funds are shifting to tokenized stocks, ETFs, and IPO-related transactions, which is one of the reasons for the diversion of funds in the crypto market.
However, the article concludes by suggesting that as market volatility gradually subsides, some of the funds that flowed out temporarily may return to crypto assets. In the short term, however, the market is more focused on whether deleveraging has ended and whether Bitcoin can stabilize within its current range.
