Bitcoin Briefly Tops $70,000 but Fails to Maintain Momentum
Over the weekend, Bitcoin (BTC) momentarily approached the $70,000 mark, only to drop by 2.2% and settle just above $67,000 on early Tuesday morning. This decline was mirrored by other major cryptocurrencies, including ETH, TON, and ADA.
Significant Leverage Use in the Market
The market’s failure to maintain momentum was accompanied by a significant amount of leverage being liquidated, with over $165 million in long positions being closed out. This indicates that traders had used excessive leverage to bet on higher prices, leading to a massive loss when the market turned against them.
Market Analysts Predict Rangebound Week
Market analysts are predicting a rangebound week for cryptocurrencies like BTC and ETH, as key resistance levels have not yet been surpassed. As QCP Capital pointed out in their Telegram broadcast:
"Both BTC and ETH have yet to clear July highs but are closing in on key 70k and 2800 resistance levels. A break above these levels is likely to attract massive retail attention…"
Lack of Fundamental Catalysts
With no major fundamental catalysts on the horizon, traders are warning that the market may experience a choppy week as it attempts to break higher. As QCP Capital further explained:
"…with no major catalysts this week, we expect crypto to chop around these levels as it attempts to break higher. In terms of macro data, we only have PMI numbers on Thursday (24 Oct) where the market will look for some reassurance if the Fed will remain on their rate cut path…"
Trading Volume Surge
Meanwhile, trading volumes surged across various cryptocurrencies, with Simon’s Cat (CAT) token experiencing a remarkable 63% increase in value after being listed on influential exchange Binance. Trading volumes skyrocketed from nearly $80 million on Sunday to over $422 million in the past 24 hours.
Market Data
CoinDesk 20 (CD20)
The broad-based CD20, which tracks the largest tokens by market capitalization, lost 2.1% over the weekend.
Top Performers and Decliners
- Simon’s Cat (CAT) token jumped 63% to lead market gains
- Dogecoin (DOGE) dropped by nearly 1%
- XRP and BNB Chain (BNB) were slightly changed
- ETH, TON, and ADA fell as much as 3%
Historical Context
The use of leverage in the market spiked over the weekend, a move that historically precedes market volatility. This surge in leverage was followed by a massive loss when the market turned against traders.
Key Resistance Levels
- BTC: $70,000
- ETH: $2,800
- TON and ADA: key resistance levels not yet surpassed
Conclusion
The weekend’s momentum has failed to sustain itself, with Bitcoin dropping 2.2% to just above $67,000. Market analysts are predicting a rangebound week ahead, as key resistance levels have not yet been cleared. The lack of fundamental catalysts may contribute to the market’s choppy behavior, but traders remain cautious and vigilant.
