Cryptocurrency Market Update: October 2023

October began with sharp declines in the cryptocurrency market, initially expected to be bullish but now referred to as Rektober. On the first day alone, the market lost $10 billion in value, with over $500 million in liquidations.

Major Liquidations

• Ethereum (ETH): $109 million
• Bitcoin (BTC): $140 million

Bitcoin faced significant resistance at $64,000, leading to a rapid price drop to just above $61,000. Despite earlier bullish sentiment, the market miscalculated the month’s potential.

Charts suggest a further fall if Bitcoin breaks below $60,000, possibly plunging into the high $50,000s. As it tests support levels, a high number of liquidations hint at excessive leverage.

Traders anticipated continued bullish momentum and opened long positions, but rapid declines triggered liquidations, emphasizing expectations for a rally. The critical question now is whether Bitcoin can maintain its support above $60,000.

Recovery is necessary to stabilize the market and rekindle hopes for gains this month. Maintaining the $60,000 threshold is vital to prevent a significant downturn.

Original publication: U.Today