Bitcoin Liquidations Hit 1-Year Record, Altcoins Follow

Key points:

Bitcoin witnessed the biggest long liquidation of the year, indicating that bulls are losing their grip over the market.

Several altcoins are striving to hold on to their support levels but may face solid selling on rallies.

Bitcoin (BTC) fell to $111,800 on Monday but has since recovered above the $112,700 level. The nasty fall was due to liquidation of leverage positions. CoinGlass said in a post on X that traders faced $1.62 billion in long liquidations in 24 hours, which was the biggest long liquidation of this year.

Select analysts are not perturbed by the fall as they anticipate BTC to turn around and charge higher in October. Since 2013, BTC has risen 10 out of 12 times in October; the last loss was way back in 2018, according to CoinGlass. BTC could hit a new all-time high in October if history repeats itself.

Crypto market data daily view. Source: Coin360

Another positive for the markets is the policy shift by the US Federal Reserve. Economist Timothy Peterson told Cointelegraph that the markets are underpricing the possibility of rapid rate cuts, and when the surprise effect kicks in, it could “jolt Bitcoin and alts up substantially,” in the next three to nine months.

Could BTC and altcoins hold on to their respective support levels? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

S&P 500 Index price prediction

The S&P 500 Index (SPX) hit another new all-time high on Monday, signaling sustained buying by the bulls.

SPX daily chart. Source: Cointelegraph/TradingView

The rally could reach 6,700, where the bears may mount a strong defense. Any dip is likely to find support at the 20-day exponential moving average (EMA) (6,550). If the price rebounds off the 20-day EMA and breaks above 6,700, the next stop could be the 7,000 level.

Sellers will have to tug the price below the 50-day simple moving average (SMA) (6,430) to weaken the bullish momentum. If they do that, the index could start a deeper correction to 6,343 and then to 6,200.