Bitcoin and Ethereum faced notable liquidation events as both cryptocurrencies continued their downward corrections. The recent selloff has driven Ethereum beneath the pivotal $3,000 mark, while Bitcoin is currently testing support levels around $92,000, leading to a wave of cascading liquidations in leveraged positions. Ethereum saw a brief dip below the $3,000 mark in today’s trading session, now sitting at $3,019 following a 2.36% drop on the day. The breach of this psychological barrier resulted in $50.7 million in liquidations, as per reports, with short positions making up the majority of forced closures. Volume profile data indicates that Ethereum’s current price is positioned significantly beneath key resistance levels. The most significant trading activity took place within the range of $4,000 to $4,400, establishing a notable supply wall that may hinder any recovery efforts. Immediate resistance is observed at $3,800, while support is presently under examination at the $3,000 mark.
The Relative Strength Index is currently at 31.09, signaling that the market is in deeply oversold territory. Ethereum has seen a decline of around 37% from its October high of nearly $4,800, as ongoing selling pressure in November has played a significant role in this downturn. Bitcoin tests $92,000 support level Bitcoin is currently priced at $92,071, reflecting a decline of 2.24% for the day, following $18.2 million in liquidations, as per reports. The leading cryptocurrency has experienced a decline of approximately 27% from its peak in October, which was around $127,500, and is currently facing challenges in maintaining support above the $90,000 mark. Technical indicators are pointing to extreme oversold conditions. Bitcoin’s RSI has fallen to 28.77, marking the lowest level observed during the recent correction.
Volume profile analysis indicates notable resistance in the range of $110,000 to $112,000, a zone characterized by substantial trading activity in the past. This cluster signifies a significant obstacle for any efforts toward recovery. The present price movement is positioned beneath all significant support levels determined by volume analysis. The $104,000 level, once a strong support, has now transitioned to serve as immediate resistance. Bitcoin must reclaim the $100,000 mark to alter near-term sentiment, although it encounters significant overhead supply along the way. Market dynamics and liquidation cascade The synchronized downturn in both assets indicates a wider market deleveraging trend instead of issues confined to specific assets. Aggregated liquidation data highlights ongoing selling pressure, as red bars consistently prevail on the liquidation charts during the correction phase.
Long positions took the hardest hit from liquidations as overleveraged traders encountered margin calls amid the rapid downturn. During October, we witnessed significant liquidation events, especially with Ethereum, which saw a staggering $800 million surge amid that selloff. Current oversold conditions on both RSI indicators indicate a possible opportunity for short-term bounce attempts. However, volume profile resistance zones suggest that any recovery encounters considerable technical challenges. Traders are closely watching to see if support remains intact at current levels or if additional capitulation pushes prices down toward $88,000 for Bitcoin and $2,800 for Ethereum.