Leveraged Bitcoin and crypto traders are getting wrecked to start the week, as investors weigh the impact of the US and Israel’s strikes on Iran.
Bitcoin surged from a 24-hour low of $65,280 to as high as $69,850, triggering a total of $432 million in liquidations, according to CoinGlass.
The majority of the liquidations hit traders going short, coming in at $253 million.
The pseudonymous crypto trader DonAlt says the fact that BTC’s price is not dropping despite the events in Iran is a potential sign of strength.
“Bad news, decent response. Interesting spot, think you can make a good bull case here.
Weekly support, negative macro news entirely disregarded. Maybe time for some up for at least a little bit, we have room up to $80,000 without flipping bullish.”
Trader Michaël van de Poppe says fear among crypto investors remains at levels typically seen near major market bottoms.
“Overlaying the data shows that markets have seen an extreme correction in terms of indicator metrics & the fear & greed index.
The last time the Fear & Greed was this low:
– Q4 2018
– COVID crash 2020
– Luna crash 2022
The chart itself shows that, over a longer period, the number goes up. It doesn’t say this is the immediate bottom in Bitcoin, as in 2022 another low was made with higher Fear & Greed data. That’s not what the chart means. However, historical data show that buying the asset with these fear & greed data points yields a positive return.”
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