Bitcoin recovers in midday after morning plunge

On the 26th, the BTC futures market liquidation amount recorded about 770.15 billion won
70% of the liquidation amount was 'long betting'... Recovered to $94,000 in the afternoon
Altcoins stopped rising and remained sideways following the sharp drop in BTC
Experts revealed divergent forecasts on the sharp drop in BTC

Bitcoin (BTC), which had plummeted in the morning, showed a recovery trend on the 26th.

On the 26th, BTC fell by about 4.8% in the futures market, touching $93,000, due to large-scale liquidation in the morning.

According to data released by the cryptocurrency hedge fund Merkle Tree Capital, about $550 million (about 770.15 billion won) was liquidated in the BTC futures market on the morning of the 26th. About 70% of the liquidation amount was long positions, with the funds of futures investors betting on further BTC rise being massively liquidated.

The plunging BTC showed a recovery trend from the afternoon, recovering to $94,000.

Altcoins, which had soared over the weekend, stopped rising due to the sharp drop in BTC. Only some altcoins rose.

◇Bitcoin = As of 4 pm on the 26th, the BTC price on Upbit was 13.12 million won. BTC dominance was 58.73%.

According to the on-chain analysis platform Sygbit, the long (bullish) and short (bearish) betting ratio in the BTC futures market was 56.63% and 43.37%, respectively.

Experts had different interpretations of the sharp drop in BTC in the morning.

Matt Maley, market strategist at investment firm Miller Tabak, said, "Now that we've tested the $100,000 level, we need to take a breather for a moment."

Shilian Tang, CEO of trading firm Arbelos Markets, predicted, "This week is a US holiday week, and in the absence of buyers like MicroStrategy, it may be difficult for the price to maintain the current level."

On the other hand, Ryan McMillan, head of investment at Merkle Tree Capital, explained, "After Bitcoin soared fearfully after Trump's election as US president, the number $100,000 remained in the minds of all investors, and this $100,000 figure caused massive long positions and a massive sell wall."

He also pointed out, "Considering that Bitcoin rose about $8,100 last week, the drop in Bitcoin is just a healthy correction."

Nick Foster, the founder of the DeFi derivative protocol Derive, also said, "The adjustment that occurred on the 26th is not uncommon in a bull market," and "the rise in Bitcoin, which began with expectations for the US interest rate cut cycle and the regulatory framework, is unlikely to be easily extinguished."

◇Rising Coins = As of 4 pm on the 26th, the cryptocurrency that recorded the largest increase compared to the previous trading day on Upbit was Moscoin (MOC), which rose about 60%.

Moscoin (MOC) is a cryptocurrency used in the virtual game platform Mosland. Mosland is an online real estate game that virtually creates existing landmarks around the world, and players can buy and sell virtual real estate within Mosland, just like the game Monopoly. The currency used in real estate transactions in Mosland is Moscoin.

Moscoin is an ERC-20 coin based on Ethereum (ETH), and it selectively utilizes more advanced blockchain technologies rather than using its own blockchain technology.

◇Fear and Greed Index = The Cryptocurrency Fear and Greed Index provided by Alternative is 79 points, entering the 'Extreme Greed' stage. Extreme Greed is a stage of rise accompanied by high trading volume and strong volatility. The possibility of market exodus at the peak is high, so it can be considered a sell zone for institutions.

The Cryptocurrency Relative Strength Index (RSI) provided by Sygbit is 41.3, recording a 'neutral' state. RSI measures the relative strength between the upward and downward pressure of a specific asset price, and indicates the overbought and oversold levels of a specific asset.

Reporter Kwon Seung-won ksw@blockstreet.co.kr