The cryptocurrency market fell sharply on Tuesday. Bitcoin repeatedly tested the $62,000 support level that day, and started a downward trend after lunch, falling below the $61,000, $60,000 and $59,000 levels in succession, falling nearly $4,000 during the day, falling to nearly $58,000 at the lowest, and rebounded above $59,000 as of press time. Ethereum once fell below $2,400 during the day, with a 24-hour drop of more than 10%.
Altcoins fell across the board, with 80% of the top 200 tokens by market cap in the red. Sun (SUN) continued its gains, up 9.6%, followed by Helium (HNT) up 8.5%, and Floki (FLOKI) up 7.1%. Echelon Prime (PRIME) led the decline, down 12.3%, Aragon (ANT) down 7.8%, and Ethena (ENA) down 6.5%.
The current overall market value of cryptocurrencies is $2.07 trillion, with Bitcoin accounting for 56.2% of the market.
In terms of U.S. stocks, at the close, the S&P 500 and Nasdaq both rose 0.16%, while the Dow Jones was flat.
If Bitcoin loses $62,000 support and “moves toward a defined liquidation zone, ideally accompanied by a significant drop in open interest, this could be an attractive opportunity.”
Furthermore, if the order imbalance shifts to the demand side, this scenario would create a high-risk, high-reward setup for long positions, especially given the favorable macroeconomic environment.”
Technical chart analyst Greg Michalowski wrote that BTC prices have moved further away from the 100-day and 200-day moving averages that are close to converging, and the upward breakthrough has failed. In addition to the natural support level of $60,000, a break below this level will allow traders to target the 38.2% retracement level from the September 2023 low to the March 2024 high, which is located at $55,124, which is a key position for the long-term downward momentum that investors need to be wary of.
In the past 24 hours, the entire network has liquidated $316 million
As Bitcoin fluctuated sharply, according to Coinglass data, in the past 24 hours, the total amount of cryptocurrency liquidations exceeded US$316 million (long positions accounted for US$280 million), and more than 86,000 people were liquidated.
Top 10 Token Performance
CoinMarkeCap data shows that most of the other top ten tokens have also fallen in the past 24 hours: SOL has the largest drop, down 7.63% in the past 24 hours, while XRP and DOGE have also fallen by 4.49% and 6.87% respectively.
The only one that bucked the trend was TON, which was recently affected by the arrest of the founder of Telegram and rose 2.04% in the past 24 hours.
Market awaits Nvidia earnings and PCE data
Artificial intelligence (AI) giant Nvidia's financial report will be released after the U.S. stock market closes on August 28 (early morning of August 29 in Taiwan). The market will carefully evaluate whether AI can bring substantial benefits to the company and related industries in the future.
The Fed's favorite inflation indicator, US personal consumption expenditures (PCE) inflation data, will be released on Friday. According to the CME FedWatch Index, investors expect the Fed to cut interest rates by one basis point at the 9/18 meeting (with a 67% probability).
