As panic set in, leveraged positions unwound and traders capitulated, 24-hour cross-crypto liquidations passing $2.5 billion.
“$50k is likely to be resistance for a decent amount of time now unless stonks to incredible things,” filbfilb, co-founder of trading platform Decentrader, summarized in a fresh synopsis after the move.
“Size of dump & distribution likely to mean consolidation into Q1 next year. Moon mission is not dead but some will think cycle over.”
The scale of the dip wiped out some important support levels, including Bitcoin’s $1 trillion asset valuation — previously a popular choice for long bets.
As Cointelegraph reported, concern over traders’ behavior was present as recently as Friday, as data showed that the market could easily be overleveraged at previous levels nearer $60,000.
With that leverage now all but flushed out, optimism among familiar faces remained, with Cointelegraph contributor Michaël van de Poppe announcing the sub-$42,000 spike as a “bottom.”