HomeNewsBitcoin's Battle at $27.5K: Middle East Conflict Casts Shadow Over Crypto Bulls...

Bitcoin’s Battle at $27.5K: Middle East Conflict Casts Shadow Over Crypto Bulls and $100M Liquidations

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  • Middle East unrest and Ethereum Foundation’s sizeable ETH sale dampen crypto optimism, with over $100M in futures evaporating.
  • Bitcoin’s struggle for stability stands out amidst broader market dips, with the focus shifting towards its crucial $28K threshold.

Drawing from a recent CoinDesk update on Bitcoin, the crypto market is currently grappling with the aftershocks of the escalating Hamas-Israel conflict and the Ethereum Foundation’s notable ether (ETH) sale. Both events have caused turbulence, with a staggering $100 million wiped from futures positions and an average market slide of 2%.

Bitcoin’s Relative Resilience

While most cryptocurrencies wavered, Bitcoin (BTC) portrayed a semblance of stability. Over the last 24 hours, it reported a modest 1% loss but managed to float above the vital $27,500 support level during the Asian trading hours on Tuesday. Amidst soaring oil prices, the spotlight is now on riskier assets, particularly tech stocks and bitcoin.

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Trusted analysts from FxPro communicated their observations to CoinDesk, stating,

“Technically, bitcoin remains in an uptrend but encountered resistance at its 200-day moving average over the weekend.”

The crypto community is now keenly observing BTCUSD, anticipating its consolidation above the $28,000 mark, which is the 200-day moving average. Achieving this could potentially catapult Bitcoin’s value to nearly $29,500.

Ethereum Faces Heat

Ether wasn’t as fortunate, registering a 3% slump, especially after the Ethereum Foundation offloaded tokens worth $2.7 million on Monday. This sale induced a panic amongst traders. Consequently, ether bulls experienced over $30 million in losses, marking the day’s highest loss across the cryptocurrency trading community.

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Other Cryptos in the Downtrend

Solana‘s SOL tokens weren’t immune to the downturn, recording a near 5% decrease. XRP and Cardano’s ADA also faced setbacks, dropping by 3.7% and 3.4% respectively. The CoinDesk Market Index (CMI), which gauges the performance of hundreds of tokens, indicated a 1.9% decline, underlining a tough phase for crypto traders.

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