Bitcoin’s 2% Crash Wipes $4.21 Billion in OI and Handicaps Altcoins, What’s Next?

• Bitcoin price triggered a rapid 2.05% decline on Friday.
• Despite a slight slowdown, altcoins have taken a major hit and are down double digits.
• The uncertainty of BTC has created a dilemma on whether to buy or sell.

THE cryptocurrency The market has been extremely sensitive to Bitcoin (BTC) price movements lately. The recent crash caused double-digit losses for altcoins. While some say this could be a good opportunity to buy the dip, others warn of an impending sell-off.

Read also : Bitcoin paves the way for potential “destruction of fiat currency”

Understanding the Crypto Market Outlook

Bitcoin price movements have been key to controlling crypto market sentiment. But lately, the altcoin sector has become extremely sensitive to pioneering cryptocurrencies. BTC lost 2.05% on Friday, sending major altcoins down 20%.

Performance of Altcoins

Due to this very sensitive connection between BTC and altcoins, Open Interest (OI) increased from $50.93 billion on Thursday to $46.85 billion on Sunday. This drop indicates that $4.21 billion in OI was wiped out due to Friday’s decision.

Crypto Market OI

Following Friday’s stock market crash, positions worth $300 million were wiped out. Of this amount, $254 million belongs to the bulls.

Total liquidations

Learn more: Bitcoin Weekly Forecast: BTC is in trouble, but $80,000 is within reach

What to expect next?

Altcoins are clearly look to Bitcoin for directional bias, so let’s understand where BTC stands. As explained previously FXStreet PublicationsThe short- and long-term market structure of BTC remains uncertain.

Crypto analyst and influencer Cold Blooded Shiller posted a tweet simplifying BTC’s directional bias.

1. According to him, the bullish trend of BTC is intact on the daily and weekly periods and must exceed $72,000 and establish a new high. Failure to do so could result in a move to $67,000.
2. If the $67,000 level is breached on the daily timeframe, investors should pay attention to the weekly support level of $61,000.
3. Between these two levels, there is no directional bias. A breakout of $72,000 higher triggers the continuation of the uptrend. A weekly reversal of $61,000 will confirm a bearish market structure.

BTC/USDT 1 day, 1 week chart

Learn more: Is BTC out of the woods?

Until the price of Bitcoin provides a clear bias, it would be risky to invest heavily in altcoins. It will therefore take the next few days

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