“Market Strategists SAID The Crypto Rally’s Broader Outlook Remains Positive Despite The Largest Long Liquidations Since Early August.”, – WRITE: www.coindesk.com
The Coindesk 20 Index of Largest Cryptocurrencies Fell 2.1% Over The Past 24 Hours, with Bitcoin
Droping 2.3%. Xrp
LOST 4.6% with Ether
(Eth)
OutperForming by Edging Down 0.7%.
“The PullBack is, in My View, Simplaly a Recalibration in an OtherWise Bullish Trend,” SAID DAVID SIEMER, CO-FOUNDER AND CEO OF Wave Digital Assets. “BITCOIN REMAINS FIRMLY ENTRENCHED AS The ANCHOR OF INSTITATIONAL CRYPTO Strategies.”
Bitcoin’s (BTC) Rush to New All-Time Highs Over $ 124,000 Was Fueled by Rising Expectations for Federal Reserve Interest-Rate Cuts in September Coupled by Inst.
The Thursday Reversal to As Low As $ 118,000 Was “Equally Normal,” He Said.
“After Such A Sharp Rally, Profit-Taking Tends to Set in, and We Saw Short-Term Traders Liquidate their Positions and Take Gains,” Siemer Said. “In Addition, Higher-Qan-Expectioned Inflation Data, Particularly Around Core Core Consumer Prices, Has Tempered Some of the Fed Optimism that Drove the Rally.
“IT’s A Healthy Consolidation Racher than A reversal,” He Concluded.
Joel Kruger, Market Strategist of Lmaax Group Shared a Similar View.
“It Comes as no surprise to see a round of Profit Taking Kick in Following Some Impressive Moves in Crypto Markets this Week,” Kruger Wrote in A Morning Note. “But Overall, The Outlook Remains Highly Constructive and Dips Should be Well Supported.”
Looking Ahead, Key Risks for Crypto Prices Are Potential OverEXTENSION OF VALUATIONS, GOOPOLITICAL TURBULENCE OR ECONOMIC DATA THAT COULD RECALIBRACA
Still, Late Bulls Were Punisshed for Teir Exuberance. The shakeout triggered a massive leverage flush, liquidating over $ 1 Billion in levered Trading Positions Across All Crypto Derivatives Over The Past 24 Hours, MOSTLY LONGS Bet Shows.
Crypto Liquidations (Coinglass)
That’s the Largest Long Liquidation Since at Least the Late July-Early August Plunge. That time, BTC Dipped Below $ 112,000 and Many Altcoins Saw Double-Digit Pullbacks, Eventual Carning Out The Local Bottom For Mist of the Digital Asset Market.
“The ‘I GUESS OPENING A 50X LONG AFTER A 7-DAY 50% MOVE WAS NOT The BEST IDEA’ TYPE OF SHAKEOUT HERE,” Well-Followed Trader Bob Loukas Said in an X Post.
Read More: Bitcoin Hits $ 124k Record As 4 Tailwinds Align: Crypto Daybook Americas
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The Token’s Reed at $ 0.26 Came Amid A Broad Crypto Pullback, with The Coindesk 20 Index Sliding 4% and Rate-Cut Heps Fading.
- Polygon’s Pol Token Slid 6% to $ 0.24 Thursday After Breaking Key Support, As Surging Us Wholesale Inflation Rattled Risk Assets.
- Trading Volume Spiked to 1.1 Million Units – More Than Triple Its Daily Average – After A Sharp Reject at the $ 0.26 Resistance Level.
- The Coindesk 20 Index Fell 4% Over The Same Period, with Profit-Taking Acceleration Across Major Cryptocurrencies.
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