Bitcoin experienced a sharp fall this Monday, succumbing to $86k, wiping out a large portion of last week’s gains. Analysts at the London Crypto Club warned that “liquidity stress still lurks in the background,” expecting volatile and range-bound markets until the end of the year. High-profile strategists like Mike McGlone of Bloomberg Intelligence doubled down on his bearish $50,000 call, pointing to factors such as normal reversion and stock-market volatility as catalysts for a deeper retracement.
A massive liquidation of leveraged positions confirmed the market’s pessimism. Coinglass data shows that in just 12 hours, $545 million in long positions were liquidated, contrasting with only $33 million in shorts. This imbalance dragged down traders who were betting on a bounce. Even BitMEX co-founder, Arthur Hayes, who is generally bullish, became more guarded, warning that liquidity is likely to thin into year-end and that the top cryptocurrency could sink to the $80,000 support level.
For investors, the key level to watch now is the $80,000 support, as its break would confirm analysts’ warnings of more intense downside pressure. Meanwhile, the persistent “liquidity stress” suggests that the market could remain choppy, forcing traders to prepare for a range-bound and volatile trading environment as the year-end approaches.
Source: https://londoncryptoclub.substack.com/p/connecting-the-dots-e17
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