As cryptocurrency markets came under renewed selling pressure, Bitcoin failed to sustain its strong gains from the start of the week, falling below $90,000.
Despite the Fed’s interest rate cut, which was in line with expectations, and its resumption of Treasury purchases, weakening risk appetite reversed much of Tuesday’s recovery.
With market weakness overall, over $514 million in leveraged positions were liquidated in the last 24 hours. Increased volatility in derivatives markets led to deeper weekly losses in major tokens.
This pullback comes after Bitcoin briefly surged above $94,500 on Tuesday, triggering a minor short squeeze. However, this move failed to break through the resistance zone that has held strong for the past three weeks. BTC has returned to the narrow, sideways range it has maintained throughout the month, with low liquidity and liquidation clusters continuing to define price fluctuations.
FxPro Senior Market Analyst Alex Kuptsikevich stated in his assessment that higher local lows and highs have been seen since November 21, adding, “Nevertheless, for this recovery to be classified as the beginning of a true market valuation, the total crypto market capitalization needs to surpass $3.32 trillion.” The current global crypto market capitalization is approximately $3.05 trillion, up 2.5% from the beginning of the week, but still below Tuesday’s local peak of $3.21 trillion.
In a note published earlier this week, QCP Capital stated that they expect a wider trading range for Bitcoin, between $84,000 and $100,000, by the end of the year. Reasons cited included declining liquidity and persistent position imbalances.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/after-the-latest-drop-were-at-a-critical-turning-point-the-total-crypto-market-value-needs-to-surpass-this-level-for-recovery/
