The crypto market saw another sharp correction on Saturday morning (UTC time), followed by a strong rebound, while over USD 2.5bn in derivatives trading positions were liquidated in the past 24 hours. El Salvador “bought the dip” once again.
At the time of writing (08:43 UTC), all top 100 cryptoassets by market capitalization are still in the red. Bitcoin (BTC) trades at USD 47,778, recovering around 10% from USD 43,530 reached earlier today. The price is still down 15% in a day, reaching the level last seen at the beginning of October. BTC is now down 24% in a month.
Meanwhile, ethereum (ETH) performed better during this crash and is now down by 13%, trading at USD 3,977. It recovered around 14%, after diving below USD 3,500 today. ETH is now down 14% in a month.
Other coins from the top 10 club are down by 12%-21% in a day.
Total liquidations in the crypto derivatives market surpassed USD 1.56bn in the past 4 hours and USD 2.5bn in a day, per Coinglass data. Over 400,500 trading positions were liquidated in a day.
“As usual, since crypto traders deploy leverage it results in cascading sell orders and liquidations,” Antoni Trenchev, Co-founder of crypto lender Nexo, told Bloomberg. “We should find support around USD 40,000 to USD 42,000 and then rebound in line for a end-year rally. If that does not hold, we might revisit the July lows of USD 30,000 to USD 35,000.”
Meanwhile, according to Vijay Ayyar, head of Asia Pacific with crypto exchange Luno, markets have also been jittery with all the uncertainty around the omicron variant of the coronavirus.
“It’s hard to say what that means for economies and markets and hence the uncertainty,” he was quoted as saying.
At the same, El Salvador’s President Nayib Bukele said the country had again bought the dip, adding BTC 150.
Missed the f***ing bottom by 7 minutes 😂— Nayib Bukele 🇸🇻 (@nayibbukele) December 4, 2021
in all the drama, ETH “only” did a textbook 0.618fib level retracement.
Pretty standard, already bounced 15%
This is the dip you’re not going to buy.
Net BTC long liqs Dec 4th: $2.159bn
Of course, this is very assumption-based, and it could be more violent, or less violent. Difficult to state with confidence, but given the severity of the crash, $2bn seems highly plausible. On April 18th we saw liquidation volumes of $4.8bn.— Vetle Lunde (@VetleLunde) December 4, 2021
Have to say it out loud, bears were most definitively right, some notable ones out there. Direction from here imo will continue to depend on equities, which is unclear, but for as long as funding remains this negative odds of another sharp correction are very low. pic.twitter.com/5CqgsKE0Uh— Alex Krüger (@krugermacro) December 4, 2021
Move appears to be lead by options market traders.
I thought the $50k level would hold for a decent mean reversion but I was definitely wrong on that aspect.
ETHBTC holding pretty well considering.
Big moves need time to digest and stabilize.
Spot buying > Lev trading— Jacob Canfield 🐸 (@JacobCanfield) December 4, 2021
So altszn turned out to be ETH crashing a bit less than BTC, only 15%. Don’t worry Ethereals, it will catch up and overshoot. It always does.https://t.co/QTiVpZepLR— Joe007 alerts·groups·funds? Scam! (@J0E007) December 4, 2021