Bitcoin Dips to $83K, Altcoins Fall 2%, Greed Index Drops to 64

Crypto Market Faces Sell-Off as Bitcoin Drops Below $83,500

The cryptocurrency market is experiencing a sustained sell-off this week, with Bitcoin (BTC) declining 2.46% in the last 24 hours to $83,419, hitting an intraday low of $82,787. Ethereum (ETH) saw a steeper drop of 4.39%, falling to $2,577 and losing the $2,600 support level. Solana (SOL) decreased by 3.35% to $116.5, and XRP fell 4.86% to $1.4243, marking a broad decline across major cryptocurrencies. The total liquidation across all crypto futures contracts reached $712 million, affecting over 123,000 traders.

Liquidation Surge Hits Crypto Traders

In the past 24 hours, a total of $712 million in crypto futures contracts were liquidated. Long positions accounted for $651 million of this amount, while short positions totaled $61.08 million. A total of 123,500 traders were liquidated. The largest single liquidation occurred on Binance, involving the ETHUSDC trading pair, with a value of $26.64 million.

Macroeconomic Headwinds Pressure Risk Assets

On the macroeconomic front, the yield on U.S. 30-year Treasury bonds reached its highest point since 2002, while the S&P 500 and Nasdaq indices pulled back from their all-time highs. The S&P 500 closed at 7,818.93 points (-0.22%) the previous day, the Dow Jones at 51,521.28 points, and the Nasdaq Composite at 27,599.89 points. Rising bond yields are compressing the space for risk assets, with cryptocurrencies being affected in tandem. The minutes from the Federal Reserve’s September FOMC meeting indicated a potential for another interest rate hike by the end of the year, with markets anticipating a move in December, further intensifying risk aversion.

Altcoins Follow Major Cryptocurrencies Downward

SOL declined 3.35% to $116.5 and XRP fell 4.86% to $1.4243 over the last 24 hours, experiencing some of the steepest drops among major cryptocurrencies. The altcoin market is seeing increased outflows, with capital continuing to flow into stablecoins as a safe haven.

Bitcoin Technical Analysis

Bitcoin closed at $83,322 on October 7th UTC. The 14-day Relative Strength Index (RSI) stands at 52.9, indicating a neutral zone. In terms of moving averages, the closing price is below the 20-day Simple Moving Average (SMA) of $84,203, but above the 50-day SMA ($80,297) and the 200-day SMA ($71,765). The Moving Average Convergence Divergence (MACD) is in a bearish configuration, with its histogram widening compared to the previous day, suggesting increasing downward momentum. Within the 20-period Bollinger Bands (2,2), the middle band is at $84,203 and the lower band is at $80,997. The closing price is trading below the middle band. Key resistance levels are the SMA20 at $84,203 and the upper Bollinger Band at $87,409. Support levels are the lower Bollinger Band at $80,997, the SMA50 at $80,297, and further down, the 30-day low at $74,968.

Ethereum Technical Analysis

Ethereum closed at $2,574 on October 7th UTC. The 14-day RSI is at 45.3, also in neutral territory. The closing price is below the 20-day SMA of $2,685, but above the 50-day SMA ($2,547) and the 200-day SMA ($2,128). The MACD is in a bearish trend, with its histogram expanding. Within the 20-period Bollinger Bands (2,2), the upper band is at $2,772, the middle band is at $2,685, and the lower band is at $2,597. The closing price is trading near the lower Bollinger Band. Immediate resistance levels are the lower Bollinger Band at $2,597 (where it closed), the SMA20 at $2,685, and the upper Bollinger Band at $2,772. Support levels are the SMA50 at $2,547 and the 30-day low at $2,359.

Fear and Greed Index Cools Amid Market Pressure

The Alternative.me Fear and Greed Index has ranged between 64 and 74 over the past eight days. It stood at 71 the previous day and has now fallen to 64, indicating a cooling of greed sentiment without a widespread panic. The rising U.S. Treasury yields continue to exert pressure on risk assets, and the Federal Reserve’s signal of a potential year-end rate hike will likely continue to influence market sentiment.