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▲ Bitcoin (BTC), virtual assets, cryptocurrencies, fear sentiment, cryptocurrency decline/ChatGPT generated image
While funds rapidly rotated into the US stock market, the cryptocurrency market lost $13.58 billion, and Bitcoin fell below key technical support lines all at once, becoming the center of selling pressure.
According to BeInCrypto, a cryptocurrency media outlet, on May 27 (local time), the cryptocurrency market fell by 0.55% that day, with $13.58 billion evaporating. BeInCrypto analyzed that after the S&P 500 recorded an all-time high closing price on Tuesday, fund rotation into US stocks accelerated, and this trend exacerbated the weakness in the digital asset market.
The total cryptocurrency market capitalization fell to $2.5 trillion, falling below the Fibonacci 0.382 retracement level of $2.53 trillion. The S&P 500 closed above 7,519 on Tuesday and rose to 7,539 during trading, hitting a 52-week high. BeInCrypto pointed out that the strength of US stocks is drawing limited capital from cryptocurrencies within risk assets.
Liquidation trends also exacerbated the decline. In the past 24 hours, long position liquidations amounted to $241.31 million, significantly exceeding short position liquidations of $103.52 million. The total liquidation volume was $344.83 million, and 92,264 traders were liquidated. BeInCrypto assessed that the concentration of long positions confirms the forced selling trend.
Bitcoin (BTC) traded at $75,202 that day, falling nearly 2% in a single day. Bitcoin fell below the 20-day exponential moving average of $77,394, the 50-day exponential moving average of $76,663, the 100-day exponential moving average of $76,805, and the 200-day exponential moving average of $81,363. The break below the Fibonacci 0.382 retracement level of $75,987 also increased technical damage.
BeInCrypto believes that Bitcoin needs to recover a closing price above at least $75,987 to stabilize its structure. Conversely, if it closes below the Fibonacci 0.5 retracement level of $73,874, the next downward benchmark will shift to the Fibonacci 0.618 retracement level of $71,762.
NEAR Protocol (NEAR) fell by approximately 10% in the past 24 hours to $2.50, recording the largest drop among the top 100 cryptocurrencies. However, despite the recent correction, its weekly gain remained at 56%, and the previous upward trend reached 165%. NEAR's long position liquidations were estimated at $13.21 million, with key support at $2.32 and an immediate bottom at $2.46. Analysis suggests that a recovery to $2.81 could reopen upward targets leading to $3.39, $3.97, and $4.91.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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