October 10 Liquidation Pressures Bitcoin as Analysts Target $70,000 Level
Bitcoin experienced a significant downturn on October 10, 2024, marking its lowest levels since the election of President Trump. The cryptocurrency fell 4.3% in just 24 hours, trading slightly above $75,000. This represents a decline of over 40% from its all-time high of $126,000 recorded on October 6, 2024.
Market Dynamics and Liquidation Pressures
The drop in Bitcoin’s price is part of a broader market correction. Alexander Blume, CEO of Two Prime, explained that the October 10 crash across the crypto market was largely driven by Binance’s illiquid markets, which triggered liquidations totaling tens of billions of dollars in a single day. Presently, the total cryptocurrency market capitalization stands at approximately $2.6 trillion, down from a peak of $4.2 trillion before the downturn.
The recent liquidation events have reached $758 million over the last 24 hours and approached a staggering $7 billion over the past week, as reported by CoinGlass. Additionally, Bitcoin exchange-traded funds (ETFs) faced significant outflows, amounting to $272 million on the same day.
Key Technical Levels to Watch
- Current Bitcoin Price: ~ $75,000
- October 6 All-Time High: $126,000
- Psychological Support Level: $70,000
- Potential Bear Market Low Range: $55,700 – $58,200
Nic Puckrin, cofounder of Coin Bureau, noted the importance of monitoring the $70,000 level. This threshold is just above the previous cycle’s all-time high of $69,000, making it a critical psychological barrier. He suggested that should Bitcoin break this level, it might indicate a deeper bearish trend, possibly leading to prices dropping within the $55,700 to $58,200 range, reflecting the average realized price and the 200-week moving average.
Macro Economic Influences
Moreover, evolving macroeconomic factors are contributing to market volatility. Analysts from Citi pointed to the nomination of Kevin Warsh as Fed chair, who advocates for a smaller balance sheet. This could potentially lead to heightened fears about a prolonged crypto winter.
Despite the current challenges, some experts suggest that if liquidity improves and market clarity returns, Bitcoin may stabilize and set the stage for a recovery. Nic Roberts-Huntley, cofounder and CEO of Blueprint Finance, has highlighted a crucial period ahead where Bitcoin must defend the mid-$70,000 range and aim to reclaim levels around $78,000 to $80,000 to indicate stabilization.
