Bitcoin approached $70,000 last weekend but failed to maintain that momentum, dropping 2.2% to just above $67,000. Other major cryptocurrencies such as ETH, TON, and ADA also experienced similar declines. Over $165 million in long positions (positions betting on price increases) were liquidated in cryptocurrency futures tracking major tokens, indicating a large amount of leverage in the market.
Meanwhile, market analysts predict that cryptocurrencies such as BTC and ETH will exhibit range-bound fluctuations this week, as key resistance levels have yet to be broken. Bitcoin (BTC) failed to maintain its momentum, which rose to nearly $70,000 over the weekend, dropping 2.2% to just above $67,000 on Tuesday morning, with all major tokens experiencing declines. BTC fell by 2%, while Ether (ETH), TON coin (TON), and Cardano (ADA) all saw declines of 3%, with Ripple (XRP) and BNB Chain coin (BNB) showing slight movements, and Dogecoin (DOGE) dropping nearly 1%.
The broadly based CoinDesk 20 (CD20) is a liquidity index tracking the largest tokens by market capitalization, which fell by 2.1%. Over $165 million in long positions were liquidated in cryptocurrency futures tracking major tokens, indicating a significant rise in leverage. As reported by CoinDesk on Monday, there was a substantial increase in leverage over the weekend, a trend that historically tends to precede market volatility.
Additionally, Simon's Cat (CAT) token rose 63% after being listed on the influential exchange Binance for futures, leading the market. Trading volume surged from nearly $80 million on Sunday to over $422 million in the past 24 hours, indicating strong trading demand for one of the largest tokens in the cat-themed token ecosystem. The Simon's Cat memecoin is officially linked to the mainstream Simon's Cat brand and is supported by its IP. Banijay, the company holding the Simon's Cat IP, reported $5.8 billion in revenue last year. CAT was launched in August in collaboration with Floki and trading firm DWF Labs.
Meanwhile, traders warn that the stock market will exhibit range-bound fluctuations in the coming week due to a lack of fundamental catalysts. BTC and ETH have yet to break through July's highs but are approaching key resistance levels of 70k and 2800. Breaking through these levels may attract significant retail attention, as QCP Capital based in Singapore noted in a Telegram broadcast. "However, with no major catalysts this week, we expect cryptocurrencies to fluctuate around these levels, attempting to break higher. In terms of macro data, we only have the PMI data on Thursday (October 24) that the market will look at for some assurance to determine if the Federal Reserve will continue to cut rates," QCP Capital wrote.
This article is for reference only and does not represent investment advice.
