On Tuesday, the cryptocurrency market continued the downward trend from Monday, with another round of washing out in the morning. This downward trend continued as US stocks opened, with the Nasdaq index dropping nearly 300 points, and the cryptocurrency market continued to decline in the evening. BTC fell below $113,000, and ETH, which had maintained around $4,200 for nearly a week, was also breached. On Tuesday, the total liquidation amount in the cryptocurrency market reached $450 million, of which $368 million was long positions, resulting in another major washout for longs, with ETH being the hardest hit this time.
The US BTC and ETH spot ETFs have seen net outflows for two consecutive days, with a larger outflow on Monday. This is believed to be due to the poor performance of the cryptocurrency market over the weekend, prompting investors to hedge and sell at the market's opening on Monday, indicating a more pessimistic market sentiment. In the absence of any particularly negative news, the cryptocurrency market has seen two consecutive days of decline, consistent with the conclusion discussed yesterday: the market is clearing excess bullish liquidity, particularly as BTC has a significant number of long positions stacked at $113,800 and ETH at $4,165, both of which were liquidated last night.
Currently, Bitcoin has temporarily fallen below the short-term support of $117,000 and needs to hold the long-term support at $112,000. If this level is also breached, the previously mentioned 'double top pattern' on the Bitcoin daily chart will indeed be established, which would result in a less optimistic outlook for the market. The market is currently awaiting Powell's speech on Friday. Based on recent market trends, there is a possibility of further hedging occurring, so special caution is advised for potential pullbacks on Thursday and Friday.
"MICA Daily｜ETF continues to see net outflows, BTC falls below $113,000" was originally published by (BlockKey).
