Cryptocurrency Market Update: Bitcoin and Altcoins Face Supply Pressure, $900 Million Liquidated
The cryptocurrency market faced a turbulent night as bears took over, resulting in a massive liquidation of almost $900 million this Friday, according to Coinglass. Bitcoin and altcoins experienced a tremendous increase in supply pressure, leading to a domino effect that saw Bitcoin lose dominion over the critical $70,000 level.
The total crypto market cap, excluding Bitcoin, fell by 8.13% overnight, briefly dipping below the $1 billion mark. However, there is hope on the horizon as the markets are bouncing back and the long-to-short accounts ratio presents an optimistic future. The long/short ratio on Binance, the biggest exchange, currently favors the bulls with 66% long accounts.
Despite the drop below $70,000, the BTC price sustains a bullish flag in the daily chart and remains above the 50-day EMA average line. The intraday candle shows a Doji candle rising above the 23.60% Fibonacci level, indicating a potential morning star pattern at a crucial support level that could ignite a bull run next week. This has led to speculation that the BTC price could hit $76,000 in the coming week.
Dogecoin, the biggest meme coin, faced a 10% downfall overnight but is challenging the ascending support trendline. If it makes a bullish turnaround next week, meme altcoins could see a bounce back. Binance’s native token, BNB, only experienced a 1.49% drop and remains resilient with an ascending triangle pattern, eyeing a breakout rally towards $743.
Solana, on the other hand, saw an 11% drop in the crash and is approaching a crucial support level at $130. A bounce back could see the altcoin resurface above $200, but a bearish win at $130 could prove fatal. Bitcoin Cash lost 21% of its market value this week, with a 13% drop last night, creating an evening star pattern that threatens the recovery rally. The downside risk is high, but a bounce back in Bitcoin could fuel a reversal in BCH to reach $1000.
Overall, with the market’s one-sided optimism rising back, Bitcoin and altcoins could find a reversal spot over the weekend, setting the stage for a potentially bullish week ahead.
