The crypto market showed little to no signs of recovery on Tuesday, along with bitcoin. trading at $91,400 while ether was trading around $3,060.
The Fear and Greed Index now reads 15/100, a low not seen since April, before the price of Bitcoin defied bearish expectations by jumping from $76,000 to over $100,000 in a month.
While there is reason to expect a bounce given sentiment is at cycle lows, Bitcoin may want to test the $87,500 support level to eliminate any remaining leverage before moving higher.
As Wall Street veteran Warren Buffet once said, “Buy when there is blood in the streets, even if it’s your own.” »
That statement might ring true for a number of traders who are willing to take risks at these levels, even as others continue to trade emotionally and lose millions in the process, as shown by Monday’s cautionary tale about a trader who lost $5.5 million after selling the fund with 30 times leverage.
Positioning of derivative products
- Leveraged crypto futures bets worth more than $1 billion have been liquidated in the past 24 hours, with long positions accounting for the majority of the total. Data shows that bulls continue to be crowded out.
- Volmex’s BVIV, which measures the 30-day implied volatility of BTC’s price, briefly hit an annualized rate of 55% during Asian hours, 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. An increase in open interest alongside a decline in the spot price would confirm a downward trend.
- ETH futures OI remains around 12.5 million ether.
- Perpetual funding rates for most tokens, excluding TRX, remain slightly positive despite significant liquidations.
- On Deribit, the put bias has strengthened in BTC and ETH options. Block flows included the $90,000 BTC strike put expiring on November 28 and the rollover of positions in the $4,000 ETH call options.
Symbolic discussion
- The privacy coin sector saw a sharp decline, with zcash and rush down 14% and 9% respectively.
- The decline exceeded the slowdown seen in other altcoins, including ether. And down about 4% in the last 24 hours.
- ASTER and HYPE, both linked to decentralized derivatives exchanges, bucked the market’s downtrend, rising 8.5% and 5%.
- The broader market remains deflated: the CoinDesk 10 index, excluding bitcoin, lost 3.8% of its value over the past 24 hours, compounding the monthly loss of 19.7%.
- Traders will be cautious following the recent crypto market plunge, this could focus on bitcoin, historically less volatile than altcoins, as they try to find a safe haven.
- A series of lower highs and lower lows across several altcoin trading pairs demonstrates a set of downtrends, although it should be noted that previous bull markets often contain a number of 30% corrections, so the market is not quite in crypto winter territory yet.
