Bitcoin prices experienced significant fluctuations on Sunday, with the leading cryptocurrency dropping to a low of $92,941 per coin. This decline also impacted the broader crypto market, which saw a 1.61% drop overall, with Bitcoin itself losing 1.42% in the last 24 hours. Despite attempts to bounce back above $93,000 per coin, Bitcoin’s trading volume remained relatively quiet at $26.18 billion. Key indicators on the 1-day BTC/USD chart, such as the relative strength index (RSI), Stochastic, and average directional index, were all indicating neutral territory.
Analyzing the moving averages on the daily chart, simple moving averages (SMAs) and exponential moving averages (EMAs) from 10 to 50 days were showing bearish signals, while longer-term MAs continued to send out bullish vibes. The holiday week saw more sellers than buyers, contributing to the dip and consolidation of prices. Cryptoquant.com data revealed a negative $169.18 Coinbase premium gap, suggesting lukewarm U.S. interest during the holiday period. Meanwhile, the ‘Kimchi premium’ in South Korea decreased from 3.38% to 1.3% over the week.
Head of research at Cryptoquant, Julio Moreno, shared fascinating data indicating a decline in Bitcoin’s sell-side liquidity. The Liquidity Inventory Ratio fell from 41 months in October to just 6.6 months, aligning with market rallies in Q1 and Q4 2024, suggesting a potential easing of selling pressure in the near future. Tether (USDT) emerged as Bitcoin’s top trading pair over the weekend, followed by the U.S. dollar, FDUSD, USDC, and the Korean won. Despite the overall crypto market being valued at $3.27 trillion, it experienced a 1.61% drop, with significant losses seen in XRP, BNB, DOGE, FARTCOIN, and other major coins.
The downtrend in prices led to liquidations totaling $126.39 million in the derivatives market, with $90.64 million coming from long positions on Sunday alone. Bitget’s BGB token and PENGU saw considerable decreases, while Phala Network (PHA) stood out as the day’s star performer with an 18.26% gain. Interestingly, FTX Token (FTT) experienced a 12.77% increase against the U.S. dollar. The crypto market’s performance over the holiday period indicates a mix of bearish signals and potential opportunities for market participants to navigate the current volatility.
In conclusion, Bitcoin’s price movements over the weekend reflected broader trends in the crypto market, with fluctuations impacting various major coins. Despite a significant drop in prices and trading volume, key indicators and data from Cryptoquant suggest potential shifts in sell-side liquidity and market dynamics in the coming days. As the crypto market continues to navigate holiday lulls and fluctuations, investors and traders will need to stay vigilant and adapt to changing market conditions to maximize opportunities amidst the ongoing volatility.
