Over 158K crypto traders lose all their funds as Bitcoin bows to strong dollar
Bitcoin and Ethereum prices have both broken their key support levels of $40K and 3K respectively, and investor sentiment is bearish.
There were 158,832 liquidations for the day, totalling $387.96 million. The largest single liquidation occurred on Okx, a BTC-USD-220930 transaction valued at $2.93 million.
The main driver of the round of liquidations, according to proponents, was a sharp selloff in the previous week, driven by a strong dollar that has reached new highs in two decades.
There was also a sudden drop in the price of many altcoins like Cardano, Solana, and XRP
As investors bet that the Federal Reserve’s interest rate increases will leave other central banks in its wake, the US dollar surged to its highest level in 20 years on Thursday.
Outlook
- The dollar index, a measure of the strength of the US currency against a basket of developed world currencies including the euro, the yen, and the pound, climbed as much as 0.9% to just under 104.
- Crypto analysts are now wondering if bitcoin price with the prevalent situation will reach the long-promised $100K level before the end of 2022.
- Bitcoin has been steadily declining over the past few days. Both the 100-day and 50-day moving average lines became heavy resistance levels last week after the price was rejected at the 100-day moving average line twice.
- Over the past week, the $40k level has also been working as a significant static resistance level. The price has been trading under the $40k level most of the time.
- There has been a recent trajectory of lower highs and lows on the chart, indicating that the bearish trend will continue.
- Currently, it appears the flagship crypto is targeting the $36K support area, which has held the price multiple times over the past year.
- A break below it, however, may result in a rapid decline toward $30K demand.
