The Bitcoin and Ethereum price slump in the past 24 hours has forced over $500 million in crypto liquidations.
Analysts and investors put so much hope in October, anticipating a unique market uptrend based on historical “Uptober” data. Unfortunately, they were shocked by the volume of liquidation the crypto industry registered in less than two days. Several market observers have named the long-believed traditional bullish month “Rektober”.
Bitcoin Leads 24 Hours Crypto Liquidations
According to data from analytics platform CoinGlass, the market lost $10 billion in value on the first day of the month, with over $540 million in liquidations. The heatmap of cryptocurrency liquidations shows that over 161,000 traders were liquidated in the past 24 hours. The total liquidations summed up to $541.16 million. Of these liquidations, the largest single order was seen on Binance and valued at $267 million.
A significant percentage of the liquidation in the last 1 hour was from Ethereum ETH $4 307 24h volatility: 3.3% Market cap: $520.31 B Vol. 24h: $43.21 B , worth $227,180. EigenLayer EIGEN $1.36 24h volatility: 6.1% Market cap: $437.81 M Vol. 24h: $70.77 M also recorded $161,140 of liquidation, while that of Bitcoin BTC $113 840 24h volatility: 0.4% Market cap: $2.27 T Vol. 24h: $44.77 B comes in at $159,020. However, BTC is leading all other cryptocurrencies on a 24-hour basis, with liquidation worth $143.26 million. Ethereum’s liquidation totaled about $111 million within the same period.
Bitcoin is trading at $61,460.02 after shedding 3.95% of its price gain. Some experts believe that the dip in BTC price can be attributed to a sharp rejection from resistance at the $64,000 level. Before the decline, the flagship saw a brief bullish rally, closing September positively.
Many hoped the October crypto bullish narrative could help Bitcoin price regain a crucial macro rising trend and potentially reach a new All-Time High (ATH). The coin even attempted to regain the 200-day Moving Average (MA) as a support level after Monday’s drop from $65,600 to about $63,200 after the heated futures market.
Will the Rektober Continue for Bitcoin?
Should the coin head further below $60,000, the asset may plunge even lower, probably around the $50,000 support zone.
Currently, the top coin is testing key support levels without any threatening drawdown in view. Due to the huge liquidations, some overly leveraged positions have also been removed. The assumption that Bitcoin will sustain its bullish momentum prompted several investors to open long positions.
These long positions accounted for most liquidations in a rather awkward twist. Analysts and crypto market experts are watching Bitcoin price action, wondering whether the largest cryptocurrency by market cap will shake off current negative trends to print a new local high. It is worth noting that Bitcoin would need to stay above the $60,000 mark to avoid severe retracement.
The crypto market must recover from the massive liquidation and regain stability to see any gains soon. As the month evolves, the impact of US Feds and China’s PbOC interest rate cuts might help the coin close higher. The freed-up liquidity in the broader financial ecosystem will force fiat devaluation that might push more institutional investors to hedge against inflation with Bitcoin.
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