The cryptocurrency market showed little to no signs of recovery on Tuesday, with bitcoin trading at $91,400 while ether it was trading around $3,060.
The Fear and Greed Index is now showing 15/100, a low not seen since April, before the price of bitcoin defied bearish expectations by rising to over $100,000 from $76,000 over the course of a month.
While there is reason to expect a bounce given that sentiment is at cycle lows, Bitcoin may want to test the $87,500 support level to remove any remaining leverage before moving higher.
As Wall Street veteran Warren Buffet once said, “Buy when there’s blood on the streets, even if it’s your own.”
That statement might ring true for several traders who are willing to take risk at these levels, although others continue to trade emotionally and lose millions in the process, as seen in Monday’s warning about a trader who lost $5.5 million after shorting the fund with 30x leverage.
Derivatives positioning
- Over $1 billion worth of leveraged crypto futures bets have been liquidated in the last 24 hours, with long positions accounting for the majority of the total. The data shows that the bulls continue to be crowded out.
- Volmex’s BVIV, which measures 30-day implied volatility in the price of BTC, briefly rose to 55% annualized during Asian time, the highest since the October 10 crash.
- Global BTC futures open interest (OI) continues to rise and has reached a six-week high of 730,550 BTC. A rise in open interest along with a fall in the spot price is said to confirm a bearish trend.
- ETH OI futures remain around 12.5 million ether.
- Perpetual funding rates for most tokens excluding TRX remain slightly positive despite large liquidations.
- On Deribit, the put options bias has strengthened in BTC and ETH options. The block flows included the $90,000 BTC call option expiring on November 28 and the rollover of positions in the $4,000 ETH call options.
symbolic talk
- The privacy coin sector saw a sharp sell-off, with zcash and run falling 14% and 9% respectively.
- The drop exceeded the slowdown seen in other altcoins, including ether. and which are down approximately 4% in the last 24 hours.
- ASTER and HYPE, both tokens linked to decentralized derivatives exchanges, bucked the market’s bearish trend, rising 8.5% and 5%.
- The broader market remains deflated: the CoinDesk 10 index, excluding bitcoin, lost 3.8% of its value in the last 24 hours, compounding the 19.7% monthly loss.
- Traders will proceed with caution following the recent cryptocurrency market crash; This could cause them to focus on bitcoin, historically less volatile than altcoins, as they try to find a safe haven.
- A series of lower highs and lower lows in several altcoin trading pairs demonstrates a set of bearish trends, although it is worth noting that previous bull markets often contain a number of 30% corrections, so the market has not yet reached crypto winter territory.
