Bitcoin drops as much as 3.2% as Brent tops $101 and 30-year yield hits 5.70%
In brief
- Bitcoin fell from $85,543.66 to a low of $82,776.30, according to Decrypt.
- Liquidations totaled $969 million, $644.47 million of it longs, per CoinGlass data cited by Decrypt.
- Brent crude topped $101 and the 30-year Treasury yield reached 5.70%, its highest since 2002.
- Stocks and gold also fell, which Decrypt said points to a problem beyond crypto.
- Decrypt's daily chart readings still lean bullish, but its four-hour chart shows Bitcoin oversold.
Leveraged longs took the hit
The drop left leveraged traders holding the bag. Roughly $969 million in crypto positions were liquidated over 24 hours, and $644.47 million of that came from long positions, according to CoinGlass data cited by Decrypt.
It wasn't only crypto. The S&P 500 fell 0.59% to 7,772.60 and the Nasdaq lost 0.71% in morning trading, while gold (the classic safe haven) dropped 1.53% to $4,123.10. Decrypt said the fact that stocks, gold and Bitcoin sold off together as oil and yields rose suggests the problem isn't specific to crypto.
Oil, yields and Hormuz
Brent crude moved back above $101 a barrel, and the 10-year Treasury yield sat near 5.34%. Decrypt's view is that pricier oil stokes inflation fears, which push yields up and hurt risk assets like Bitcoin.
The UK Maritime Trade Operations agency has logged at least one ship attack a day in the Strait of Hormuz or the Gulf of Aden since October 2, Al Jazeera reported, as cited by Decrypt. On Monday, Iran's Revolutionary Guard ordered a tanker entering the strait to turn around or risk attack, Decrypt reported. The Federal Reserve was also scheduled to release minutes from its September 15-16 meeting the same day.
The daily and four-hour charts disagree
Decrypt's technical analysis shows Bitcoin was rejected near $86,978.45 on the four-hour chart before the slide began. Fibonacci levels at $83,768.01 and $84,877.38 acted as intraday resistance, and the four-hour RSI read 32.2, which Decrypt called oversold.
The daily chart tells a different story.
On that chart, the ADX was 42.8 (Decrypt described that as a strong bullish trend) and the RSI was a neutral 52.5. The 50-day EMA stayed above the 200-day EMA on both timeframes. The daily squeeze was still on, with a momentum reading of 1.17 that was slipping, and the day's low stopped about $150 above a Fibonacci level near $82,626.41.
Then there's Myriad, a prediction market developed by Decrypt's parent company, Dastan. Its October lows market put the odds of Bitcoin touching $82,500 this month at 92%, $80,000 at 67% and $77,500 at 43%. Its highs market gave 55% to $87,500 and 36% to $90,000. Both markets resolve on Binance price touches, not closes.
Frequently asked questions
How much was liquidated during Bitcoin's drop below $83,000?
About $969 million in crypto positions were liquidated over 24 hours, according to CoinGlass data cited by Decrypt. Long positions made up $644.47 million of that total.
Was the Bitcoin sell-off specific to crypto?
Decrypt said it didn't appear to be. The S&P 500 fell 0.59%, the Nasdaq dropped 0.71% and gold lost 1.53% as oil and yields rose. Decrypt said that kind of broad sell-off suggests the problem isn't specific to crypto.
