On Friday, Bitcoin (BTC) changed hands above $77,000 as total crypto market liquidations exceeded $1.5 billion within a 24-hour window.
Key points:
- Bitcoin halted its downward trajectory after sliding to $76,320 while markets digested facts regarding a $6.3 billion security breach on Binance.
- The impact of the breach on cryptocurrency markets was exacerbated by equities downturns tied to fourth-quarter earnings forecasts, with Intel Corporation (INTC) experiencing a 26% decline in premarket trading on Friday.
- Bitcoin’s relative strength index formed a positive divergence on four-hour charts as downward selling momentum abated under the $77,000 threshold.
US technology stock drop amplifies digital asset anxiety post-Binance exploit
TradingView metrics demonstrated the BTC/USD pair sliding down to $76,320 amidst the aftermath of a massive $6.3 billion security compromise affecting the premier digital asset exchange Binance.
BTC/USD one-day chart. Source: Cointelegraph/TradingView
Across the broader sector, rolling 24-hour trader liquidations attained $1.56 billion, with long positions making up the vast majority of that sum at $1.31 billion based on CoinGlass metrics.
BTC/USD vs. crypto liquidations (screenshot). Source: CoinGlass
In a recent communication on X, Binance characterized the intrusion as intricate, noting that the event involved multiple security infractions.
The exchange stated that it is actively compiling facts and will provide further details transparently as they emerge.
Selling pressure eased once the enterprise guaranteed that any customer losses would be fully reimbursed via its dedicated SAFU reserve alongside additional corporate assets.
This exploit intensified macroeconomic headwinds for digital assets, accompanied by a pullback in US equities on Thursday following disappointing tech earnings reports. Alphabet missed both revenue and profit goals on Wednesday, causing GOOGL to drop 13% to $282, marking its weakest valuation since April.
Alphabet stock one-day chart. Source: Cointelegraph/TradingView
Premarket equity values for Intel plummeted 26% on Friday after the corporation issued a softer-than-anticipated outlook, despite reporting third-quarter revenue and earnings that topped forecasts. Intel stated that fourth-quarter revenue is expected to range between $15 billion and $16 billion, falling short of Wall Street estimates of $17 billion to $18 billion.
Intel stock one-day chart. Source: Cointelegraph/TradingView
BTC price positive divergence surfaces near local bottoms
Examining shorter timeframes, Bitcoin valuation indicators reverted to levels unseen since BTC/USD recorded multi-month lows close to $57,000 back in late June.
On Thursday, prices closed beneath the lower limit of the Bollinger Bands volatility gauge, an occurrence last documented on June 25. Such price action indicates that valuations are trading over two standard deviations under the 20-day simple moving average (SMA). Although Bollinger Bands do not provide direct buy or sell signals, a close outside the lower boundary frequently suggests an impending mean reversion. The 20-day SMA currently rests at $81,324.
BTC/USD one-day chart with Bollinger Bands data. Source: Cointelegraph/TradingView
The relative strength index (RSI), a widely utilized momentum indicator, declined to 34.7 out of 100 on Friday, marking its lowest reading since June 30 and moving close to oversold territory beneath the 30 line.
On the four-hour chart, the RSI revealed a bullish divergence against the Bitcoin price, establishing a higher swing low compared to the lower low observed on the BTC/USD chart. These divergences often signal diminishing seller dominance and a potential shift in the local market trend.
BTC/USD four-hour chart with RSI data. Source: Cointelegraph/TradingView
Originally published at https://cointelegraph.com/markets/bitcoin-price-metrics-hint-at-rebound-as-16b-liquidations-follow-binance-hack?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound.
