Bitcoin Hovers Around $98K Amid $500M Liquidations

• Liquidations soared to $511M, with $383M in long positions wrecked.
• Resistance stands at $100K, with support at $95,354; RSI shows overbought levels.

Bitcoin retraced from its record-breaking rally, trading at $97,954, down 0.03% in 24 hours. BTC’s market cap fell below $1.9 trillion, losing over $60 billion since Friday. Meanwhile, the global crypto market cap dropped 0.74% to $3.34 trillion, with a trading volume of $199.2 billion, down 3.24% over the last day. 

Crypto liquidations soared to $511 million in the past 24 hours. Long positions faced $383 million in losses, while shorts lost $136 million. Binance recorded the largest single liquidation order of $13.4 million. Bitcoin accounted for $78.94 million of the liquidations, followed by Ether ($42.25M) and DOGE ($34.96M).

Geopolitical unrest has pressured Bitcoin’s price. The recent escalation of tensions in the Middle East led many investors to choose gold over cryptocurrencies. Following Iran’s missile attack in October, Bitcoin initially dropped, underscoring its vulnerability to global instability. 

In the U.S., macroeconomic factors also shaped Bitcoin’s price movement. A stronger-than-expected labor market and solid payroll reports hinted at further Federal Reserve rate cuts. Historically, such cuts have boosted Bitcoin as investors shift to riskier assets for higher returns.

Technical Indicators Remain Positive

Bitcoin faces resistance at $100,000, with support at $95,354. If the price breaks above resistance, it could target $105,000. A drop below $95,000 may result in further declines to $90,000. Technical indicators remain positive for Bitcoin. 

The RSI stands at 78.55, showing overbought conditions and signalling potential consolidation. The 9-day moving average at $95,354 remains above the 21-day moving average at $88,044, indicating bullish momentum. Their recent crossover reinforces a positive medium-term outlook.

Despite the correction, Bitcoin’s prospects remain strong. Institutional and retail demand shows no signs of slowing, especially with the incoming pro-crypto Trump administration. 

Analysts expect easing monetary policies and increasing adoption to support Bitcoin as 2024 progresses. With solid fundamentals and supportive policies, Bitcoin could regain its upward momentum toward year-end, potentially setting new milestones.

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