Major cryptocurrencies experienced a significant surge on Tuesday evening, following a rapid decline and subsequent rebound in their prices. However, this volatile market movement has resulted in substantial losses for traders, with Coinglass data revealing liquidation losses amounting to a staggering $106 million in the past 24 hours.
The market experienced a significant downturn on Monday, triggering the first round of liquidations. This was primarily driven by concerns surrounding FTX’s potential sale of its crypto holdings. Bitcoin witnessed a sharp decline, falling below $25,000, a level not seen since mid-June. Similarly, Ether recorded its lowest price in six months.
FTX is anticipated to gain approval for asset liquidation during its upcoming bankruptcy court hearing scheduled for Wednesday.
Franklin Templeton has announced its entry into the competitive cryptocurrency sector by filing an application for a Bitcoin exchange-traded fund (ETF).
Currently, the global crypto market capitalization stands at $1.03 trillion, a 2.16% increase in the last day.
The Nasdaq Composite experienced a decline on Tuesday as a result of Oracle’s disappointing performance, leading to a downward pressure on tech stocks. On its first losing day in three, the Nasdaq slid 1.04% to 13,773.61, while the S&P 500 also experienced a drop of 0.57%.
Crypto analyst Michael Van de Poppe provides key insights and updates on the current market situation.
Firstly, Franklin Templeton, a renowned $1.5 trillion asset manager, has filed for a Bitcoin Spot ETF. Their entry into the market signifies their interest in seizing a portion of the lucrative opportunities presented by cryptocurrencies.
Additionally, Gary Gensler, currently in a hearing, could shed light on the potential approval of an ETF on Ethereum. This could also address whether Ethereum is considered a security or not. Secondly, the upcoming CPI announcement holds significance for the market as it serves as an important indicator.
Now, what’s next for Bitcoin and what are must-hold levels?
It is evident from recent price action that a clear upward trend reversal has taken place. Of greater significance is the fact that Bitcoin has reclaimed the 200-week EMA, as illustrated in the accompanying chart.
“The levels at $25,300-25,600 are the absolute bottom levels which Bitcoin must-hold, preferably higher. If Bitcoin takes out $26,800, then we’re eager for $30,000 next,” Van de Poppe explains.
The #Bitcoin price took out all the lows & bounces back in the range
Is the bottom in? What are the metrics to watch? It’s a strong sign that we’re bouncing back up above $26,000 since the correction today.
Just on the moment that Franklin files for a Spot ETF.
Coincidence?
… pic.twitter.com/nLNIBhNubp
— Michaël van de Poppe (@CryptoMichNL) September 12, 2023
Crypto analyst Benjamin Cowen pointed out that when the death cross occurs, BTC often experiences a rally. However, it is important to note that these rallies typically result in lower highs.
While #BTC likes to rally when the death cross hits, remember that the rally typically leads to lower highs. pic.twitter.com/8vtkcxtjYC
— Benjamin Cowen (@intocryptoverse) September 12, 2023
According to another analyst, CrediBull Crypto, Bitcoin has experienced a drop below $25.2k, but managed to hold above $24.8k and quickly rebounded.
“Heading for 27k+ now imo. This is why we don’t call something a failure before invalidation is hit.”
Produced in association with Benzinga
