As crypto market cap closes to $1T

, Bitcoin prices reach $21K

After the Oct. 26 Wall Street Open, Bitcoin ( BTC), the price of Bitcoin returned to $21,000 for only the second time since September. This was because buyers had consolidated their gains.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

BTC bulls “eat” ask liquidity

Data from Cointelegraph Markets Pro, TradingView. BTC/USD hit local highs at $21,012 on Bitstamp.

The pair explored territory beyond their reach over six weeks at the time of writing.

According to Coinglass data, liquidations continued to flow, with the last 24 hours delivering $750 million in Bitcoin-related liquidated positions.

Cross-crypto liquidations amounted to $1.43 trillion, which is more than the 2022 record.

Crypto liquidations chart. Source: Coinglass

The US equities were not the catalyst, as they were merely playing catch-up. However, Bitcoin was able to reduce overall risk-asset correlation.

Instead, the spotlight was on gold which saw relief rally after the U.S. Dollar struggled. The DXY (U.S. Dollar Index) reached its lowest level since Sep. 20, 2009.

U.S. dollar index (DXY) 1-day candle chart. Source: TradingView

Material Indicators, an analytics platform, observed that the demand for liquidity was rising as a result of the tracking of the order book at Binance, the largest global exchange.

It said that “a large chunk of ask liquidity has been eaten in the last 24 hours and some have been replenished but there is no doubt that BTC bulls received some help when blocks were adjusted upward” in a part of a tweet update.

BTC/USD order book data. Source: Material Indicators/Twitter

$21,000 was a key level for analysts like Il Capo of Crypto who had previously predicted the market’s retracing point at that time to retarget macro lows.

Rekt Capital, a fellow trader and analyst, also pointed out that Bitcoin is not yet at the bottom of its decline from its all-time highs.

He tweeted along with comparative charts, “On the usual scale, BTC has broken its year-long downtrend.”

“On the log scale however the year-long downtrend remains to be tested.”

BTC/USD annotated log chart. Source: Rekt Capital/Twitter

Key milestone in crypto market cap

There was good news beyond Bitcoin for crypto markets.

Similar: What is the cryptocurrency market doing today?

The total crypto market capitalization fell to 5% below the $1 trillion mark over the past year.

“Total market cap of crypto is up 2.5% today,” David Gokhstein (founder of Gokhstein Media), commented, noting a euphoric feeling among participants.

Crypto market cap 1-day candle chart. Source: TradingView

These views and opinions are the author’s and do not necessarily reflect those of You should do your research before making any investment or trading decision.

Opinion writer on 7trade7