The crypto market cap holds steady at $2.88T after a bullish structure shift, signaling a potential higher low formation ahead. Despite a recent 0.88% dip, the total crypto market cap stays above key fib levels, showing strength after April’s recovery. Sentiment remains bearish, but price structure and volume suggest the market is building a solid base between $2.7T and $3.0T. The total cryptocurrency market cap is showing signs of renewed strength after a major structural shift on the daily timeframe. The market currently sits at $2.88 trillion, down slightly by 0.88% on the day. However, despite the dip, recent price action has turned bullish. A clean break in structure has emerged following April’s recovery. Traders now eye a higher low as the next key development. A purple support zone just below current levels looks promising. If that fails, deeper Fibonacci levels may provide support. Structural Recovery Follows Steep Correction Since November 2024, the crypto market has moved through a well-defined cycle. The trend started near $2.1 trillion and quickly rallied. December brought explosive growth, pushing the market cap above $3.6 trillion, a 71% rise. Mid-December marked the first peak, followed by a minor consolidation. Source: CRG Momentum returned in January 2025, briefly lifting the market near $3.6 trillion again. However, February reversed the trend. A steep March correction dragged the market down 25%, dropping the cap from $3.1 trillion to $2.3 trillion. April marked a turning point. The market formed a rounded bottom near the $2.3 trillion level. Fibonacci retracement zones appeared, showing possible recovery targets. Price eventually rallied near $3 trillion before pulling back slightly. Bulls Watch for Base Before Breakout Current consolidation between $2.7 trillion and $3.0 trillion suggests a new base may be forming. This aligns with broader bullish sentiment despite recent bearish headlines. CRG from MacroCRG notes that sentiment remains near record lows. However, price structure tells a different story. The market now trades above key Fibonacci levels, with volume evenly split between buyers and sellers. This balance hints at an accumulation phase rather than distribution. The purple zone beneath current prices could form the ideal higher low. Moreover, technical traders view dips as opportunities rather than signals of collapse. With a bullish structure in place, a strong move higher seems increasingly likely. Price may need more time to build momentum, but the foundation appears solid.

  • More than 677 million in crypto positions were liquidated over a 24 hour period, with over 171,722 traders affected across leading exchanges.  

  • Bitcoin had fallen below 102,000 and Ethereum fell beneath 2,300 following the U.S. airstrikes in Iran's nuclear facilities. 

  • Whether markets continue their decline, or could ultimately recover rapidly if the attack does leads to de-escalation or negotiation, may rest upon Iran's response to the attack. 

During the last 24 hours, the cryptocurrency market sustained severe losses after renewed geopolitical risks relating to the United States and Iran.

Market Plunge Triggers Massive Liquidations

Bitcoin fell below the $102,000 mark, while Ethereum dropped under $2,300, triggering a wave of liquidations across major exchanges. Over 171,722 traders were liquidated within the same period, resulting in a total of $677 million wiped from the market. The largest single liquidation recorded was an ETH long position worth $9.15 million on the HTX platform.

Crypto analyst CryptoPatel referred to the event as a "liquidation bloodbath," however he didn't know why he used quotation marks because charts were "nuked" and traders were "wrecked". The rapid decline in digital assets was attributed to worsening geopolitical risk and fears, followed by an ongoing nuclear ratchet effect.

https://twitter.com/CryptoPatel/status/1936627706889728180

The numbers also reflect the rapidity of the market's response to event risks. Houses of cards don't take long to collapse. Especially while leveraged positions are in play, the degree that the market moved this week was extreme.; and long trader positions were the most severely affected by prices crossing below key technical levels.

Geopolitical Events Add to Market Volatility

According to updates shared online, the decline followed a U.S. airstrike targeting Iran’s nuclear facilities. Israel later confirmed severe damage resulting from the strike. In response, Iran issued a strongly worded statement referencing former U.S. President Donald Trump, saying, “Trump started this. We’ll end it.”

This unexpected increase in tensions sparked broad uncertainty which triggered a flight from risk in traditional and crypto markets. Market behavior quickly shifted to a high alert scenario with volatility rising and the tone of trading sentiment transitioning to a more defensive position. 

As the geopolitical situation progresses, traders are attentive to what future potential outcomes might play in shaping price action in the short term. But uncertainty remains an indicator of volatility in the crypto space.

Future Market Direction Hinges on Iran's Response

Market watcher @CW8900 noted that future crypto movements now depend heavily on Iran’s reaction. If the situation escalates into an all-out conflict, price stagnation or continued decline may follow. However, if diplomatic efforts emerge, a swift recovery could be expected.

https://twitter.com/CW8900/status/1936685050185314363

Market participants are on edge with the progression of geopolitical events, and are continuing to shift between risk-off and risk-on sentiment. This simply illustrates that the crypto market remains susceptible to the progression of global events and external shocks.

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