Key Takeaways
- $1.7 billion dollar liquidation event as Bitcoin fell sharply under $100,000 US early this week.
- US inflation data results this week are a mixed bag.
- The final US interest rate decisions are expected in the middle of next week. The market expects a 25-basis-point cut.
On Monday, the market experienced one of the largest liquidation events in its history, with $1.7 billion US in leveraged positions wiped out across major exchanges worldwide. The majority of the liquidations, totalling $1.5 billion, were on the long side.
We have since Monday seen a progressive recovery in the market, with Bitcoin trading just below $100,000 at the time of writing.
US Inflation Data
This month’s Consumer Price Index (CPI) results have landed at 0.3% as per forecasts. CPI describes the changes in prices of goods and services for consumers, while the change in prices of finished goods and services by producers (PPI) had landed hotter than expected at 0.4% when 0.2% was expected.
This is an interesting mix of results as these data points are both used by the US Federal Open Markets Committee (FOMC) members when passing interest rate decisions. This group meets for the last time in 2024 next week on the 19th, and could further drive volatility in crypto markets. The current consensus in the market is for a rate drop by 25 basis points.
Fear and greed currently reads 83 – Extreme Greed.
Bitcoin Analysis
Using a Bollinger Band, Bitcoin is currently experiencing a period of consolidation on the 12-hour timeframe after a recent attempt to breach the $100,000 level.
Throughout this week, the middle of the channel has acted as a dynamic support and resistance level for the market. Using this indicator, below are two potential outcomes over the weekend.
Bullish Scenario
Bitcoin continues to see market demand above the middle basis line for the band and heads back towards the upper band.
Bearish Scenario
Failure to hold the line in this channel could result in the market gravitating towards the lower band.
💱 Swyftx Flows
The buy-to-sell ratio for unique Swyftx orders is nominally >$20,000 AUD (rolling data over the last 7 days, captured at 09:00 am AEST).
Disclaimer: The information on Swyftx Learn is for general educational purposes only and should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to, buy or sell any assets. It has been prepared without regard to any particular investment objectives or financial situation and does not purport to cover any legal or regulatory requirements. Customers are encouraged to do their own independent research and seek professional advice. Swyftx makes no representation and assumes no liability as to the accuracy or completeness of the content. Any references to past performance are not, and should not be taken as a reliable indicator of future results. Make sure you understand the risks involved in trading before committing any capital. Never risk more than you are prepared to lose. Consider our Terms of Use and Risk Disclosure Statement for more details.
