by Coinstrooper Crypto Articles
Quick Take
  • The crypto market is up today following the weekend’s correction, with the cryptocurrency market capitalization rising by 4.4%, going back to $4 trillion.
  • 97 of the top 100 coins have appreciated over the past 24 hours.
  • At the same time, the total crypto trading volume is at $270 billion.
  • At the time of writing, all top 10 coins per market capitalization have seen their prices increase over the past 24 hours.

What Happened

“The arrival of spot crypto ETFs and institutional interest has lulled investors into a false sense of security, but it remains the only market that trades after hours. In this environment, thin liquidity, overleverage, and the involvement of big players make for a toxic cocktail.”

Ironically, Puckrin says, “now that the dust has settled, many blue-chip tokens have seen a strong rebound – including Ethereum, which is looking particularly strong back above $4,000. As such, many spot investors find themselves in a similar position to where they were before the flash crash. This is certainly an argument against excessive leverage in a market with fluctuating liquidity in such an uncertain geopolitical climate.”

Market Context

The crypto market is up today following the weekend’s correction, with the cryptocurrency market capitalization rising by 4.4%, going back to $4 trillion. 97 of the top 100 coins have appreciated over the past 24 hours. At the same time, the total crypto trading volume is at $270 billion.

At the time of writing, all top 10 coins per market capitalization have seen their prices increase over the past 24 hours.

Bitcoin (BTC) appreciated 2.9%, currently trading at $115,097. It’s the second-lowest rise of the category.

The highest one is Binance Coin (BNB)’s 14.9% to $1,318. It’s followed by 10% by Dogecoin (DOGE), now trading at $0.2087.

When it comes to the top 100 coins, 97 have seen an increase, the highest of which is 51.1% by ChainOpera AI (COAI), followed by Bittensor (TAO)’s 32.1% to $402. A dozen more coins have recorded price increases.

Nick Forster, Founder at onchain options platform Derive.xyz, commented that we saw “an unprecedented market meltdown” on Friday, as well as $19 billion in liquidations across the industry.

Moreover, “with order books thinned out, forced liquidations and panic selling had an outsized impact on price, fueling a self-reinforcing cascade of liquidations and accelerating the flash crash.”

Nic Puckrin, crypto analyst and co-founder of The Coin Bureau, said that “the bloodbath we saw in markets over the weekend is a brutal reminder that, as the crypto market grows and matures, the risks are amplified.”

“The good news is that this has cleaned out the excessive leverage and reset the risk in the market, for now. However, Bitcoin now faces another uphill battle to break past key resistance levels that will allow it to reach a meaningful new all-time high this year,” he concluded.

At the time of writing on Monday morning, BTC trades at $115,097. On 10 October, the coin dropped from $121,561 to $109,883 on 12 October. Since then, it has recovered to the current price.

Ethereum is currently trading at $4,152. The price fell from $4,350 on Friday to $3,683 the following day.

Why It Matters

If BTC moves above $117,000, a short-term rally toward $124,000 could follow, and then toward $126,000 to retest previous highs. However, a drop below $108,000 may lead to $103,000 and below $100,000 towards $98,200.

A breakout above $4,055 could open doors for a move toward $4,200 and $4,330. However, a drop below $3,720 may lead to the $3,512 zone.

Details

Crypto Winners & Losers

Ethereum (ETH) is up by 8.7%, now changing hands at $4,152. This is the third-highest increase in the category.

The lowest increase is Tron (TRX)’s 2.2% to $0.3227.

On the other hand, MemeCore (M) fell the most: 7.7% to $2.05.

‘Now That the Dust Has Settled, Many Blue-Chip Tokens Have Seen a Strong Rebound’

“The crash was triggered by renewed fears of a U.S.-China trade war, after Donald Trump threatened an additional 100% tariff on Chinese imports,” Forster says. “This came on the heels of China announcing new restrictions on rare earth element exports, escalating tensions between the two economies.”

Levels & Events to Watch Next

Over the past 24 hours, the coin moved between the low of $111,247 and the high of $115,792. Over the past week, its intraday low was $109,883, and the intraday high was $126,080.

In the past day, ETH moved between $3,802 and $4,196, as well as between $3,686 and $4,747 in a week.