Crypto Market Down to $2.54T After Double Top; $660M Liquidations
Total crypto market cap fell to $2.54 trillion as Brent oil gains and a confirmed double top prompted about $660 million in derivatives liquidations, including $255.96M in ETH and $182.53M in BTC longs.
The total crypto market capitalization dropped to $2.54 trillion, about 7% below its May 10 peak, after a double top formed on May 6 and May 10 and roughly $660 million in derivatives liquidations cleared across exchanges. Long positions accounted for about $589 million of the liquidations.
Brent crude has risen roughly 16% over the past month amid U.S.-Iran tensions and disruptions to shipping through the Strait of Hormuz. The oil rally coincided with the market pullback and was cited by some market participants as a factor in price moves.
Bitcoin traded near $76,973, down about 1.5% on the day and roughly 7% from a recent $82,803 high. Price sat between horizontal support near $76,679 and the $76,010 level, the 0.382 Fibonacci retracement. Immediate resistance was at $78,606; a break below $76,010 would highlight deeper support levels at $73,911 and $71,813.
Ethereum led liquidation totals with $255.96 million in long positions closed out over 24 hours. BitMine chairman Tom Lee attributed part of Ethereum’s recent weakness to higher oil prices and said an inverse correlation between ETH and crude has been notable.
Bitcoin Cash recorded the steepest one-day decline among large caps, trading around $384 after a roughly 7% drop. BCH fell below a $387 floor tied to the 0.618 Fibonacci level and lost its 20-day exponential moving average near $433 on May 11. Lower retracement levels to watch are $359 and $324.
Security incidents affected decentralized finance during the move. The Verus-Ethereum bridge was exploited for about $11.58 million, bringing DeFi-related losses in May above $20 million.
In traditional markets, Japanese brokerages continue to expand crypto offerings. SBI Securities and Rakuten Securities plan to launch in-house Bitcoin and Ethereum investment trusts, and a survey of 18 brokerages found 11 are considering similar products.
Market breadth left total capitalization positioned between immediate support at about $2.52 trillion and resistance beginning near $2.64 trillion and extending to about $2.72 trillion. A break below the $2.52 trillion level would place a $2.47 trillion horizontal floor back in focus.
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