Bitcoin was once again trading nervously. Buyers tried to keep the price near local lows, while the stock market was digesting a tech sector sell-off in Asia and waiting for new signals from Micron.
At the open in the US on Tuesday, bitcoin (BTC) failed to show a confident move. The market remained under pressure after the drop in Asian tech stocks.
BTC Price Holds at Key Zone
According to TradingView, on short timeframes BTC moved without a clear direction. The main level for traders became the area around $62,500.
BTC/USD one-hour chart. Source: TradingView.
During the day, bitcoin fell below $62,000 twice. The trigger was weakness in Asian markets, where stocks suffered significant losses. In the US the reaction was milder: at the time of publication, the S&P 500 was down about 1%, and the Nasdaq Composite was losing around 1.3%.
S&P 500 one-hour chart. Source: TradingView.
The Kobeissi Letter links part of the current volatility to expectations around the Micron Technology report. The company is set to publish its third-quarter earnings forecast on Wednesday.
“Speculation around the Micron report has become one of the key factors in current volatility,” analysts wrote on X.
According to them, Micron‘s market cap already exceeds $1.2 trillion, and its shares are driving a broader momentum rally. Therefore, sentiment around the company now affects not only the stock itself but also the overall risk appetite.
Micron Technologies daily chart. Source: TradingView.
Separately, The Kobeissi Letter pointed to South Korea. There, the market fell due to concerns about possible regulation of unrealized gains and high leverage among traders.
“As a result, volatility is intensifying in both directions. This also explains why the S&P 500 index has already rebounded more than 60 points from its intraday low after the market opened,” analysts noted.
At the same time, they do not consider the current fluctuations unusual. In their view, the overall narrative around artificial intelligence has only intensified, and sharp moves after such a market rally look normal.
VIX volatility index daily chart. Source: TradingView.
Bitcoin Triggers Major Liquidations
While BTC remained in a narrow range, the price continued to hit nearby liquidity. As a result, both longs and shorts were affected.
According to CoinGlass, over the past 24 hours, the volume of liquidations in the crypto market approached $700 million.
Trader Daan Crypto Trades noted that the $65,000 level did not hold. After that, the market quickly moved lower to grab liquidity below $62,000.
“The $65,000 level still did not hold, after which the market quickly went down to grab the liquidity located below $62,000,” he wrote.
Crypto market liquidations. Source: CoinGlass.
The CryptoReviewing account called the imbalance between longs and shorts “absurd.” According to its data, on Tuesday, the volume of liquidations over the rolling 24 hours reached up to $1 billion.
