Crypto Market Plunges as Bitcoin Price Hits $62,684
The cryptocurrency market took a sharp downturn on Wednesday, with Bitcoin's price dropping to $62,684 in early trading. The decline was swift and merciless, with Ethereum falling 4.2% to $1,875 and Solana plummeting 4.4% to $73.
Over $670 million in crypto liquidations ripped through the market in just 24 hours, with a staggering $533 million coming from long positions. This suggests that many traders had bet on a rally that never materialized.
The Federal Reserve's upcoming meeting has been a major concern for investors, and the current market dynamics seem to be pricing in a dovish outcome. However, even a surprise rate hold at 3.50-3.75% might not be enough to spark a rally, given the bearish technical picture.
The charts tell a clear story: Bitcoin's brief push towards $66,921 was just a trap, with the price dropping back down to its prior lows. The RSI is at 46.5, indicating a neutral to slightly bearish reading. Meanwhile, the Squeeze Momentum Indicator has been active for nine bars, suggesting that something is building up, but the momentum reading shows barely any bullish lift.