The global crypto market is under heavy pressure after Eurozone inflation data hit 3.2%. Market sentiment is further dampened by investor anticipation of the upcoming US Non Farm Payrolls data on June 5. This macroeconomic uncertainty has triggered a risk off wave, forcing many investors to pull capital out of riskier assets like Bitcoin.
Technically, Bitcoin is currently retesting a critical support area at the $68,826 level. Price action in the last few hours has shown high volatility, reflecting market uncertainty. On chain, we are seeing brutal liquidation pressure. Based on the latest data, total liquidations in the derivatives market reached $604.32 million in the last 24 hours. This figure is dominated by long positions totaling $580.61 million, indicating a massive long squeeze as many traders remain trapped in a bullish bias while the market is actually experiencing a pullback.
This situation is worsened by the Long/Short ratio on major exchanges like Binance, which is still at 2.0798. This high number shows that many retail traders are still fighting the trend, hoping for an instant rebound. This gives market makers an incentive to keep pushing prices lower to sweep the liquidity resting below.
My Roadmap and Analysis
We need to be very cautious about the next support levels. The first support has broken convincingly. Now we must watch the last support area in the $65,280 - $63,990 range. If this level fails to hold, the bearish trend will surely continue deeper. For us traders, it might be time to see you next time or take a wait and see approach so our capital doesn't get trapped in a downtrend.
Stay nimble in your decision making. Keep an eye on Binance’s $24.51 billion in trading volume as a key indicator of market movement. Don't let emotions control your trading plan. Have you entered a position at this support area with a calculated risk, or are you waiting for the liquidation dust to settle and for a clearer trend confirmation?
Source
- Bitcoin Slips Below $70K, Solana Under $80 as Crypto Slides
- Bitcoin tumbles below $70 000 for first time in two months
Posted Using INLEO
