Dogecoin (DOGE) increased by up to 5% in response to Twitter’s makeover on Monday. During the European morning hours, bitcoin (BTC) fell below $29,100, defying the larger market decline.
Elon Musk’s Twitter is renaming to X as part of his X.AI artificial intelligence-focused group of enterprises. Musk placed the ticker logo for dogecoin to his bio early on Monday, fueling suspicion that the cryptocurrency may play a larger role in the relaunched corporation.
Meanwhile, on bitcoin-tracked futures, nearly $30 million in longs – more than 96% of all levered futures positions – were liquidated in a single hour, which may have contributed to the precipitous drop.
Liquidation occurs when an exchange forcibly terminates a trader’s leveraged position due to a partial or entire loss of the trader’s initial margin. This occurs when a trader is unable to meet the margin requirements for a leveraged position or does not have enough funds to keep the trade open. Large liquidations might indicate the local top or bottom of a market move, allowing traders to position themselves properly.
The loss in Bitcoin caused a drop in numerous key tokens, with Tron’s TRX and Polygon’s MATIC falling 3.4% and Solana’s SOL falling nearly 5%, respectively. Meanwhile, analysts believe a dearth of bullish news and a generally quiet summer will weigh on bitcoin prices, with some targeting the $27,000 level.
“If bearish pressure intensifies, the next significant support level would be $27,000, the lower boundary of the rising channel from the November lows and the 200-week moving average,” said Alex Kuptsikevich, senior market analyst at FxPro.
Simons Peters, markets analyst at eToro, expressed similar sentiments. “Bitcoin is currently on a slow retreat as the price continues to fall from recent highs.” Although market dynamics in the summer months can be volatile due to decreased trading volumes, the current time has been relatively tranquil for the market’s main cryptoassets,” Peters added.
“The current softening of the price suggests investors are looking for positivity to cling to, but with little forthcoming for now, it is very much wait and see,” Petersadded.