Bitcoin remained close to its lowest levels in two months at the opening of Wall Street on August 18th, as the market grappled with significant liquidations.
Data from Cointelegraph Markets Pro and TradingView indicated that BTC’s price movement was relatively stagnant, following an 8% loss triggered by a single daily candle.
The cryptocurrency market experienced a wave of liquidations across its derivatives sectors, with these dominating the scene while spot selling remained subdued.
Notably, trading firm QCP Capital highlighted a substantial short liquidation event on the Deribit exchange, hinting at a major account being wiped out.
Market observers, including QCP, noted that the reaction to a reported write-down of SpaceX’s $373 million Bitcoin holdings appeared to be overblown.
Recollections of past instances of market influence by Elon Musk, CEO of SpaceX and Tesla, resurfaced, leading some to hope that the market would not revisit such volatility.
The scale of liquidations seen rivaled those following the FTX exchange meltdown, which caused BTC/USD to plunge to $15,600 in November 2022.
The cryptocurrency’s price wavered around $26,000, sparking differing interpretations among market participants about the situation’s true nature and its future ramifications.
Noted trader and analyst Rekt Capital provided a grim outlook, pointing out a potential double-top formation for BTC/USD in 2023 and the lack of support from trend lines and moving averages during the downturn.
READ MORE: Former US President Donald Trump’s Ethereum Wallet Surges to $2.8 Million
Conversely, some market participants remained optimistic.
Trader CryptoCon identified two significant benchmarks that often precede successful price rebounds during bull market retracements: the relative strength index (RSI) bouncing at the 0.382 Fibonacci retracement level.
According to CryptoCon, this pattern repeated across multiple cycles.
Rekt Capital also highlighted the oversold condition of the daily RSI, a level unseen since June 2022, but reminiscent of bear market conditions.
Looking ahead, market focus turned to Jerome Powell’s forthcoming commentary, as the chair of the United States Federal Reserve’s speech at Jackson Hole was anticipated to hold the potential to introduce new volatility.
In summary, Bitcoin struggled near its two-month low on August 18th as the market grappled with significant liquidations across derivatives, despite relatively weak spot selling.
Traders offered differing perspectives on the situation, with some expressing concern over potential negative patterns, while others identified historical indicators of rebounds during bull market retracements.
The anticipation of Jerome Powell’s upcoming speech further added to the market’s uncertainty.
Other Stories:
Coinbase’s ‘Stand with Crypto Alliance’ Gains Momentum Amidst Lawmaker Engagement Push
Silvergate Bank Undergoes Executive Shake-Up Amid Crypto Transition and Legal Challenges
Coinbase’s ‘Stand with Crypto Alliance’ Gains Momentum Amidst Lawmaker Engagement Push
