Key Points:

• Bitcoin’s value has slightly recovered but is still under pressure due to weak network adoption and negative market signals.
• Leveraged investors in cryptocurrency have experienced substantial losses, totaling $940 million in liquidations, mainly from long positions.
• The NFT sector has also faced a slump, with significant falls in blue-chip collections like Pudgy Penguins and Bored Ape Yacht Club, while CryptoPunks have shown relative stability.

Overview of Bitcoin’s Current Situation:

Bitcoin has rebounded from lows around $108,760 to over $110,000, yet it faces bleak recovery prospects as on-chain activity highlights weak network participation.

“The price momentum is weakening with the RSI close to the oversold zone and a bearish MACD,” emphasized Timothy Misir, head of research at BRN. [Translation: “The price momentum is weakening with the Relative Strength Index nearing the oversold zone and a bearish Moving Average Convergence Divergence.”]

The broader market remains pressured with notable declines in the CoinDesk indices.

• Derivatives Positioning: Liquidations of $940 million in leveraged positions within the last day predominantly hit long positions, with Ether incurring $320 million. Despite volatility, open interest in Bitcoin remains near historic highs.

• NFT Market Clarification: Major NFT collections have undergone significant declines, with collections like Pudgy Penguins seeing major trading volume dips. CryptoPunks continue to maintain their status as a reliable asset despite a 1.35% decrease over the week.

In summary, the cryptocurrency market is grappling with a challenging milieu characterized by low demand, high liquidation levels, and a declining NFT ecosystem.