The cryptocurrency market has experienced a slight rebound, with total market capitalization rising to $2.39 trillion, reflecting an increase of 2.42% in the past 24 hours. Despite this upward movement, the market sentiment remains cautious, as indicated by the Fear & Greed Index, which sits at 8, categorizing the sentiment firmly in the extreme fear zone.
Bitcoin is currently trading near $70,177, marking a daily gain of 3.83%. However, it is still down 10.54% for the week. Meanwhile, Ethereum has also shown resilience, climbing 4.69% to $2,092, although it has seen a weekly decline of 12.50%. This broader market recovery seems to be stabilizing after a recent sharp pullback, with short-term relief overshadowing longer-term pressures.
In the realm of large-cap assets, XRP has increased by 2.80% in the last 24 hours, while BNB has gained 1.20%. Additionally, Solana has seen a daily rise of 2.47%, although it remains one of the weaker performers over the past week. The stablecoin market continues to trade close to their pegs, suggesting limited movements in defensive capital.
The current rebound appears to be driven more by market positioning and short-term relief rather than a significant shift in overall sentiment. With the average crypto Relative Strength Index (RSI) hovering around 47, the market is neither in a deeply oversold condition nor entering a bullish phase.
Despite this price recovery, data from derivatives markets indicates heightened volatility. According to CoinGlass, total liquidations over the previous 24 hours reached $297.68 million, with short positions accounting for $217.45 million. This indicates that the recent upward movement has caught many bearish traders off guard. Ethereum led the liquidations with $137.74 million, followed by Bitcoin at $90.47 million. Notably, Solana and XRP also contributed to significant losses.
A total of 94,526 traders were liquidated during this period, with the largest single liquidation order being a $32.51 million ETHUSDT position on Bitget. This imbalance in liquidations suggests that the recent rally was partly fueled by forced short covering rather than fresh demand in the spot markets, highlighting the ongoing volatility as prices attempt to stabilize.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
