The cryptocurrency market experienced a sharp single-day drop a few days ago, with Bitcoin briefly falling below the $60,000 mark. However, it saw a positive but brief rebound this morning, surging to $72,280 around 7:00 AM before reversing course and falling back to $70,183 before this article went to press. Ethereum also briefly rose to $2,150 and is currently trading at $2,070.
Liquidation amount: $300 million
From a technical perspective, market sentiment was clearly panicked after Bitcoin broke below the key support level of $60,000, and today's sudden surge triggered a minor liquidation. According to CoinGlass statistics , nearly 90,000 traders worldwide were forced to liquidate their positions in the past 24 hours, with a total liquidation amount of $344 million, mainly short positions.
Is the sell-off not over yet? Beware of a short-lived rebound.
Analysts generally believe that multiple factors combined led to this sell-off: first, the uncertainty of the global macroeconomic environment continued to rise; second, some large institutional investors took profits; and third, the chain reaction of liquidation after excessive expansion of leveraged trading.
It's worth noting that leverage in the cryptocurrency market was already at historically high levels before the crash. Many investors used high leverage to long on Bitcoin and Ethereum; when prices began to fall, these positions were forced to close, further exacerbating the downward pressure and creating a vicious cycle.
