This summary text is fully AI-generated and may therefore contain errors or be incomplete.
The cryptocurrency market experienced significant volatility on Monday, causing losses for leveraged traders. Approximately $400 million in liquidations occurred in the crypto futures markets, resulting in the destruction of both long and short positions.
Following the correction, a trader warned users of a potential deeper correction and identified a support zone between $37,150 and $38,360. If Bitcoin were to reverse its trend, it would face resistance at $43,850 and $46,400.
Analysts and traders are closely monitoring key support levels to determine the direction of Bitcoin’s price movement. Despite a 10% drop in price, Bitcoin rebounded from the $40,000 support level. The Money Flow Index reaching 91.57 suggests sustained momentum, potentially driving Bitcoin to higher levels.
On-chain data indicates that Bitcoin’s available supply is at historic lows, indicating increased accumulation by HODLers, particularly institutional investors. Institutions have shown a preference for Bitcoin, with BTC holdings doubling in the first three quarters of 2023, reaching 50% of portfolios in September.
In summary, the recent volatility in the cryptocurrency market has caused losses for leveraged traders. Bitcoin faces potential resistance at $43,850 and $46,400, while key support levels are being closely monitored. Despite a temporary drop in price, Bitcoin’s momentum remains strong, with increased accumulation by institutional investors.