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▲ US, Iran, Bitcoin (BTC)/ChatGPT generated image
Amid the shock of the US airstrikes on Iran, approximately $300 million was liquidated in the cryptocurrency market, but Bitcoin (BTC) on-chain indicators showed signals pointing to a medium-to-long-term dollar-cost averaging opportunity. With the market once again in extreme fear, CryptoQuant highlighted "an on-chain pain level rarely seen."
According to crypto media outlet Benzinga on July 7 (local time), Bitcoin briefly surpassed $64,000 during the day before giving back its gains. Ethereum (ETH) surged to $1,800 but was pushed back to the mid-$1,770s by strong selling pressure. XRP and Dogecoin (DOGE) also showed weakness.
According to CoinGlass data, cryptocurrency market liquidations amounted to approximately $300 million over 24 hours, mostly from long positions betting on price increases. Bitcoin's open interest decreased by 2.90%. However, retail investors and whale investors in Binance's derivatives market increased their Bitcoin long positions during the downturn. The Crypto Fear & Greed Index also dropped back into the "extreme fear" zone.
Market instability intensified after the US airstrikes on Iran. The US military conducted airstrikes against Iran after attacks on merchant vessels occurred in the Strait of Hormuz. The US Treasury also revoked sanctions waivers that applied to Iranian oil exports.
On-chain analytics firm CryptoQuant stated that the supply of Bitcoin held at a loss has exceeded 10 million BTC. Long-term holders also sold Bitcoin at a loss, and the realized market capitalization recorded $1.06 trillion. CryptoQuant stated, "This level of on-chain pain is rarely observed," and "suggests the possibility of a medium-to-long-term dollar-cost averaging opportunity."
Cryptocurrency analyst Ali Martinez stated that if Ethereum reclaims $1,800 as a key support level, it could open the way to resistance levels at $1,980 and $2,079. He warned, "If selling pressure holds at $1,800 and pushes it back down, the volume distribution thins significantly, and the next support level lies at $1,237."
[Article Key Summary]
-Amid the aftermath of US airstrikes on Iran, approximately $300 million was liquidated in the cryptocurrency market over 24 hours, mostly from long positions.
-CryptoQuant raised the possibility of a medium-to-long-term dollar-cost averaging opportunity as the supply of Bitcoin held at a loss exceeded 10 million BTC.
-Ali Martinez stated that if Ethereum reclaims $1,800, it could head towards $1,980 and $2,079, but if pushed back again, the next support level would be $1,237.
*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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