The ongoing sell-off of Bitcoin and altcoins appears far from over, with the recent data suggesting that the behavior of the CME Bitcoin and equity futures markets set to open on Sunday will be critical in determining the future trajectory of BTC prices.
Key Insights:
- A significant drop in overall open interest reveals the extent of the $20 billion in leveraged positions liquidated, indicating a market increasingly hesitant to re-enter.
- Continuous selling pressure on Bitcoin is expected to persist until the openings of the CME BTC and equity futures markets on Sunday night, in the US.
The cryptocurrency markets remain under pressure following Friday’s drastic sell-off, which resulted in over $20 billion in liquidations across centralized exchanges and additional losses in the DeFi space.
Traders found themselves taken aback by President Trump’s declaration regarding tariffs on Chinese imports, which sent shockwaves through the crypto landscape. According to CoinGlass, Bitcoin is struggling to hold its ground above $110,000, while Ethereum (ETH) and Solana (SOL) have seen declines of 3.74% and 7.0%, respectively.
24-hour crypto market liquidations. Source: CoinGlass
Liquidations
Trump’s tweet resonated just two hours before the end of trading for equities and the regulated crypto exchanges, raising concerns about potential further declines in prices as trading volumes and order books taper off during the weekend.
Ray Salmond, Head of Markets at Cointelegraph, spoke with Nicole Petallides at Schwab Network, where he discussed how Bitcoin, Ether, and numerous altcoins are vulnerable based on data from liquidation heatmaps.
“Looking at liquidation heatmap data from Hyblock Capital reveals pockets of long positions being targeted… this spans from $120,000 to $115,000 and further down to $113,000.”
Ray Salmond discusses the ongoing sell-off in the crypto market.
Market Discussion
Furthermore, Salmond noted:
“Numerous metrics suggest that Bitcoin is currently undervalued. If we take an average price of $120,000, a standard deviation adjustment indicates a range where significant bids persist.”
Related Article: Bitcoin may face prolonged uncertainty amid tariff concerns
BTC/USDT Liquidation Heatmap
Currently, with Bitcoin struggling beneath the $110,000 threshold, the liquidation heatmaps point to substantial long positions near $98,600, with traders unwilling to initiate new positions, particularly within the perpetual futures market.
Open Interest Analysis
Across the cryptocurrency landscape (excluding BTC and ETH), global open interest has suffered, with many exchanges observing a drastic decrease in open interest of nearly 45%.
CEX and DEX Open Interest
The likelihood of Bitcoin and the broader market experiencing further declines remains high during the weekend, pending the opening of the CME futures markets for Bitcoin and equities on Sunday. The nature of these openings will provide critical insights into trader sentiment from traditional finance regarding current dynamics.
A rise in global open interest or a stabilization trend could indicate a potential market shift in direction.
User EndGame Macro has provided valuable insights into the market dynamics leading up to the recent turbulence.*
EndGame Macro Insights
This article does not serve as investment advice. All trading actions come with risks, and individuals should perform thorough research before making decisions.
