According to Coinglass data: Bitcoin has been liquidated for $160 million in the past 24 hours, and $100 million was liquidated when it fell on April 30. Bitcoin contract positions have decreased by 10% from the peak. In contrast, Ethereum only had a liquidation of $60 million, and the contract positions remained basically unchanged. This decline can be basically confirmed as a targeted clearance after the market lacked liquidity, targeting the existing BTC positions.
The risk that needs to be noted is that there are still many users holding long positions in Bitcoin, and the long-short ratio of their accounts is above 3:0.
What is the current market trend?
If bitcoin fails to clear the $62,500 resistance zone, it is likely to continue its decline. An immediate support on the downside is near $61,200.
The first major support is at $60,000. The next support is currently forming near $58,500. If the price declines further, a drop to the $57,000 support area is possible in the near term.
At present, we are in the M-top pattern at the weekly level. I believe everyone has seen this trend on the daily chart. Seeing the wailing in the market, I realized that our opportunity is coming and the cottage season may not be far away. Recently, there are three voices that are particularly loud:
There is no bull market for altcoins anymore
The profit from hair loss has come to an end
New coins listed on Binance are all high-priced nesting dolls
The source of these voices is: retail investors do not make money, but can only be cut off. This voice usually appears in a big bear market, when investors at the bottom of the cryptocurrency circle cannot make a profit. The good news is: these voices are often a signal that the market has bottomed out.
ETH Trends
Ethereum price extended its decline and broke below the $3,320 support level.ETH tested the $3,240 support level and is currently expected to move above the $3,380 resistance level.
The main resistance is at $3,540. A break above the $3,540 resistance is likely to push the price higher. The next key resistance is at $3,620, above which the price is likely to move up to $3,650. If it moves higher, Ether might drop to the $3,720 resistance in the coming days.
If Ethereum fails to break the $3,450 resistance, it could fall again. An initial support on the downside is near the $3,325 level. The first major support is near the $3,24 area.
A break below the $3,240 support could push the price towards $3,200. If the price declines further, it could drop to $3,120 in the near term.
Is it time to cover positions in altcoins?
This depends on your personal situation. First of all, the position allocation should be reasonable. Don’t bet all on altcoins. It is recommended to allocate more than 60% of the position to BTC and ETH.
This can not only hedge against the high volatility risk of altcoins, but also provide a chance to obtain high returns from altcoins. It is recommended to prioritize replenishing ETH and BTC, and then consider replenishing altcoins.
As for whether to sell altcoins at a loss, it also depends on one’s risk tolerance.
