Bitcoin struggled to find direction during the Wall Street open on Tuesday. While the sales wave that started in technology stocks in Asia spread to global risky assets, the BTC price also displayed a volatile appearance in the short term. One of the prominent headlines in the market was that crypto liquidations increased up to $ 1 billion in the last 24 hours.
There were two drops below 62 thousand dollars
According to TradingView data, BTC/USD parity moved erratically in low time frames. While the $62,500 level became one of the main thresholds monitored during the day, Bitcoin fell below $62,000 twice due to the weakness in Asian markets.
Losses also attracted attention on the stock side. At the time of the news, the S&P 500 was down 1 percent and the Nasdaq Composite Index was down 1.3 percent. Although the decline in the US markets was more limited compared to the sales in Asia, the deterioration in risk appetite put pressure on crypto assets.
The Kobeissi Letter noted that one of the key factors driving volatility is expectations for Micron Technologies’ third-quarter guidance to be released on Wednesday.
Micron expectation and leverage effect came to the fore in volatility
Sharing market evaluations, The Kobeissi Letter stated that not only share sales but also expectations for the technology company Micron Technologies are effective in the current fluctuation. Micron is followed as a major semiconductor manufacturer, especially known for its memory and storage solutions.
Mini dictionary: Q3 earnings guidance are forward-looking forecasts in which companies share their revenue, profit or demand expectations for the third quarter. Markets may react as harshly to these expectations as to the announced result.
Kobeissi argued that legal concerns about unrealized gains and the increased use of leverage among investors also played a role in the decline in South Korean markets. In the same evaluation, it was stated that this situation magnified price movements in both directions and partially explained the 60 point recovery of the S&P 500 from its opening low.
Sharp increase in crypto liquidations
Although Bitcoin remained in a narrow band, it made sharp and short-term moves in nearby liquidity zones. This situation led to the liquidation of both bullish and bearish positions. CoinGlass data showed 24-hour crypto liquidations reached nearly $700 million.
Trader Daan Crypto Trades said that the $65,000 level was not maintained and then the price quickly pulled down to accommodate liquidity below $62,000. Analysis account CryptoReviewing found the liquidity imbalance between long and short positions remarkable and noted that as of Tuesday, the 24-hour cumulative liquidation amount had risen to $1 billion.
CryptoReviewing stated that the liquidity imbalance between long and short positions has reached an unusual level, and suggested that the next stage could please bullish investors.
While the $ 62,500 level is closely watched in the market in the short term, global stock volatility and expectations for company balance sheets continue to have an impact on Bitcoin. It is considered that both the macro risk appetite and the pressure resulting from leveraged transactions may be decisive in terms of the direction of the price movement.
