The leading cryptocurrencies, Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) slip to multi-month lows on Thursday, erasing all gains since Donald Trump won the US presidential election in November 2024.
Bitcoin dropped to $60k during the early hours of Friday, while ETH retested the $1,750 support level, with XRP also declining to $1.11.
The three leading cryptocurrencies have undergone double-digit corrections, with no signs of a near-term rebound.
Bitcoin revisits the $60k low
Bitcoin recorded a double-digit loss on Thursday after losing 10% of its value to revisit the $60k level for the first time since November 2024.
The bearish performance resulted in over $350 billion being wiped out from the broader cryptocurrency market within a few hours.
According to CoinGlass, the losses resulted in a $2.62 billion wipeout of leveraged positions. The largest single liquidation occurred on Binance, with an entity losing $12.02 million in the BTC-USDT pair.
Long traders lost $2.14 billion since Thursday, while short traders suffered a $465 million liquidation during that period.
In line with the liquidations, the derivatives market Open Interest (OI) has dropped to $95.73 billion on Friday, extending a decline since the October 7 peak of $233.50 billion.
Furthermore, the long-to-short ratio is at 0.9594 over the last 24 hours, indicating more short positions compared to the long positions.
A key factor in BTC’s bearish performance is the declining confidence among institutional investors.
US spot Bitcoin ETFs recorded an outflow of $258 million on Thursday, amounting to more than $500 million so far this month.
The outflow makes it three consecutive months in which outflows exceeded $6 billion.
Until market volatility subsides and leverage is further reduced, Bitcoin is likely to continue trading in line with risk assets rather than behaving as a defensive hedge.
Bitcoin could gain efficiency by tapping $72k
The BTC/USD 4-hour chart is bearish but inefficient due to the sharp drop recorded on Thursday.
Bitcoin has left an efficiency gap in the $72,900 region, and the bears could grab liquidity at that point before dipping lower.
At press time, Bitcoin is trading above $65,650, down 7.9% in the last 24 hours.
If the market ignores the efficiency level and continues its correction, BTC could extend the decline toward the weekly support at $54,800.
The Relative Strength Index (RSI) reads 23 on the 4-hour chart, an oversold condition, indicating strong bearish momentum.
Additionally, the Moving Average Convergence Divergence (MACD) indicator showed a bearish crossover since January, which remains intact, further supporting the negative outlook.
However, following this massive correction, Bitcoin could reclaim higher levels in the near term.
If the recovery commences, BTC could rally towards the $72k EPA level over the next few hours or days.
The post Bitcoin eyes $72k after correcting to $60k: Check forecast appeared first on Invezz
