Selling pressure in the cryptocurrency market has increased significantly in the last 24 hours. According to CoinGecko data, global market value decreased by 5.4% to $2.37 trillion. During this period, Bitcoin dropped to $66,900, testing the lowest level seen since the beginning of April. It was reported that risk appetite on social media platforms has weakened and investor sentiment has rapidly deteriorated.
Liquidity gap in Bitcoin came to the fore
It was noteworthy that in the last decline of the market, Bitcoin lost approximately $ 8,500 in value in three days, falling from $ 74,000 to $ 65,500. Crypto data account CoinAnk noted that levels seen as support during the downtrend were quickly breached and significant liquidity below the current price was largely depleted. CoinAnk is known as an account that shares data and analysis on crypto markets.
Mini dictionary: Liquidity describes how easily an asset can be bought and sold without its price deteriorating drastically. Liquidity wall refers to intense buy or sell orders accumulated within a certain price range.
According to the same analysis, there is a dense liquidity wall between $69,000 and $75,000, and the peak density in this region is calculated to reach $243.74 million. As the price fell, the accumulation of new short positions in this range stood out as a factor that made the upward movement even more difficult.
According to CoinAnk data, Bitcoin has largely consumed significant liquidity below the current price, and an intense order accumulation of $243.74 million has occurred in the range of $69,000 to $75,000.
Sentiment and support levels are closely monitored
On-chain data firm Santiment reported that social media sentiment has moved into “extreme fear” territory as Bitcoin tests $66,900. The company also considered the Bitcoin sell-off from Strategy, led by Michael Saylor, as one of the main triggers of the recent decline. Santiment stands out as an analysis company working on market sentiment and on-chain metrics.
Santiment noted that the intense pessimism on social media indicates that individual investors are withdrawing from the market from time to time, and this can be seen before short-term reaction increases in some periods.
Analyst Neel stated that two months of gains in the market were erased in just 22 days. According to Neel, the $65,000 level is a critical support for Bitcoin. Stronger support is seen near the weekly 200-day moving average at $61,800. On the Ethereum side, $ 1,800 and $ 1,400 levels were among the main support areas monitored.
| Presence | Monitored level | Notes |
|---|---|---|
| Bitcoin | $65,000 | critical support |
| Bitcoin | $61,800 | Stronger support near weekly 200-day moving average |
| Ethereum | $1,800 | First support zone |
| Ethereum | $1,400 | Lower support zone |
Technical indicators also pointed to weakness in altcoins
Market analyst Aaron Dishner said that Bitcoin closed Tuesday with a loss of 6.5%, while the RSI indicator decreased to the level of 10 and approached the bottom value of 8.95 on February 5. According to Dishner, momentum still favors sellers. Although transaction volume has increased, it has not yet reached as high levels as during the sharp sales period at the end of January and early February.
The outlook for Ethereum was evaluated to be relatively weaker. Dishner stated that ETH fell 7.3% on Tuesday, falling into the historical support area at $1,846, and the RSI indicator fell to 11.48. This chart was cited as one of the factors indicating that Ethereum may be under more pressure than Bitcoin.
Warning signs also came to the fore on the altcoin front. Dishner said that the second TBO breakout was confirmed in XRP on Tuesday, and a similar structure was seen before the 30% decline. It was reported that BNB retreated to the lower band of the daily TBO cloud, the first TBO break occurred in SOL and the third break was recorded in ADA.
Mini dictionary: RSI is a technical indicator that measures the speed and strength of price movements. TBO, on the other hand, refers to a breakdown structure that the analyst uses in his own technical model, the details of which are not given in the news.
Macro indicators gave mixed signals
Dishner also noted that Bitcoin dominance has declined approximately 4% since mid-May, with the daily RSI indicator closing at a very low level of 5.56. In contrast, stablecoin dominance increased by 7.16%. This movement indicated that investors turned to more protected assets instead of considering the decline as a buying opportunity.
On the macro side, it was noted that the dollar index maintained its strong outlook, gold remained horizontal, and the PAXG/BTC rate increased while Bitcoin declined. While the upward trend in S&P futures continued, negative divergence in momentum indicators revealed that investors were faced with diverging signals in global markets.
