The overall cryptocurrency market is under pressure, with Bitcoin approaching the $100,000 mark, and mainstream coins like Ethereum and Solana experiencing simultaneous declines, mainly influenced by tight liquidity, regulatory events, and market sentiment.
Overview of today's cryptocurrency market performance
Overall trend: The market continues its downward trend, with the spot price of Bitcoin dropping to around $101,000 (a decrease of 2.9% from the previous day), Ethereum down 3.96%, and Solana down 3.9%, with a daily market capitalization evaporation of approximately $300 billion. CME Bitcoin futures fell by 2.91%, and Ethereum futures dropped by 3.81%, indicating heightened short-term selling pressure.
Liquidation data: In the past 24 hours, the total liquidation amount across the network reached $563 million, affecting over 200,000 investors, highlighting the risks of leveraged trading.
Capital flow: Outflows from cryptocurrency spot ETFs, long-term holders accelerating sales, and related concept stocks like MicroStrategy (MSTR) and Coinbase (COIN) are under pressure.
Current Bitcoin trend analysis and strategy
Bitcoin has now dropped back to a key support area, and we need to pay attention to the lower green key support and purple trend line. If BTC breaks below support and quickly recovers above the trend line, I will consider going long.
Long position idea: If BTC recovers above 100,700 after touching the trend line, that would be a great long entry point. Friends worried about missing out can consider accumulating longs around 100,000-97,000.
Short position idea: If BTC breaks below support and cannot return above it, or does not rebound strongly, then the retest after breaking support would be a great short opportunity.
ETH supplementary analysis
Ethereum is very weak, having quickly dropped after being blocked at the upper resistance area. It is currently testing the Fibonacci 0.618 level and beginning to slowly retrace. However, I do not hold much hope for ETH unless BTC quickly recovers above and breaks down again; otherwise, I believe ETH will continue to drop to previous lows, even down to the next key support at 2,800.
Sector hotspots and capital flows
The privacy coin sector has emerged strongly.
Despite the overall market decline, privacy coins and the ZK sector displayed remarkable resilience. Delphi Digital monitoring data shows that ZEC surged 239% this month, becoming one of the best-performing altcoins. Meanwhile, ORE rose by as much as 2710%, and Clanker increased by 166%.
The market capitalization of privacy coins is advancing towards $24 billion, becoming a new choice for capital flight. Analysts point out that Zcash (ZEC) and Dash (DASH) have gained favor with funds due to their unique privacy features.
The drop leaderboard is brutal
The altcoin market sees a widespread decline, with multiple coins dropping over 20%:
· MITO: plummeted 27.2%, currently at $0.086
· GIGGLE: down 22%, currently at $203
· KITE: down 21%, currently at $0.07
· DCR: down 20.6%, currently at $35.3
Stablecoins face another decoupling crisis
The decentralized stablecoin project Stream Finance's dollar stablecoin XUSD briefly dropped to $0.26, deviating from its peg by over 77%, causing panic in the market. The project faced a loss of about $93 million, exposing the structural risks of derivative stablecoins.
Panic data perspective
Liquidation and clearing surge
During the market crash from November 4 to 5, a total of 479,000 people were liquidated globally, with a total liquidation amount reaching $2.055 billion, of which long positions accounted for 80%. Although the situation eased by the evening of November 6, there were still 160,200 liquidations within 24 hours, amounting to $316 million.
Long-term holders selling off
According to CryptoQuant data, over the past 30 days, long-term holders' Bitcoin holdings have net decreased by 405,000 BTC, with the total value of this batch of sold Bitcoins exceeding $40 billion based on the average price during this period.
Three smart strategies to cope with panic
1. Look for strong coins instead of blindly bottom-fishing
Trading analyst IncomeSharks suggests avoiding attempts to catch the "falling knife" and focusing on charts that have shown early bullish reversals or breakouts from long-term downtrends. ZEC's counter-trend rise is a typical example, indicating that funds are actively positioning.
2. Focus on popular narratives of privacy and ZK
Investor Lark Davis points out that even with bearish market sentiment, privacy coins and ZK (zero-knowledge) projects are rising in their own right. CoinGecko data shows that "Privacy" and "Zero Knowledge (ZK)" have made it into the top six hottest categories globally.
3. Wait for Bitcoin to clearly lead the direction
Market analyst Benjamin Cowen holds a cautious view, warning that altcoins may still fall another 30% against Bitcoin before rebounding. He believes that holding Bitcoin is currently a safer choice, and if BTC sets a new all-time high, it will be more appropriate to reassess rotation into altcoins.
