U.S. stocks surged on Monday, recovering from recent declines as oil prices retreated and investor sentiment improved ahead of key economic data. The S&P 500 rose 1.9% while the Nasdaq Composite gained 2.2% by midday. A sharp 4.3% drop in Brent crude oil to roughly $94 a barrel boosted the broader market, even though shares of major tech firm Nvidia declined, raising jitters among technology investors.
Fed rate hike speculation and macro data
Traders moved to price in an approximately 80% probability of a Federal Reserve quarter-point rate increase in December. This adjustment followed a stronger-than-expected U.S. jobs report, which raised expectations for continued monetary tightening.
Market participants are now awaiting Tuesday’s release of the October consumer price index from the Bureau of Labor Statistics. The CPI data will provide further insights into inflation trends, which could influence future Fed policy decisions. The report reflects the latest changes in what U.S. households pay for goods and services.
Bitcoin price action and liquidation surge
Bitcoin rebounded to $74,685, representing a 0.7% increase after dipping to $73,667 earlier in the day. The cryptocurrency returned to price levels last seen in early August, following last month’s significant 25% rally. However, current trading dynamics are notably different, marked by heightened volatility and a pullback from recent highs.
A wave of forced selling swept through the crypto market, triggered by steep derivatives liquidations. Data from CoinGlass, a cryptocurrency analytics platform, recorded $1.2 billion in positions liquidated over 24 hours. Of this amount, $324 million involved Bitcoin trades, with nearly 87% attributed to long positions that anticipated higher prices.
Exchanges liquidate traders’ positions when collateral is insufficient to cover ongoing losses, which often amplifies price swings during periods of market stress.
Mini dictionary: CoinGlass — An analytics platform specializing in derivatives, liquidation, and open interest data for cryptocurrency markets.
| Asset | Total Liquidated | Longs (% of total) |
|---|---|---|
| All Crypto | $1.2 billion | Approx. 87% |
| Bitcoin | $324 million | Approx. 87% |
Key technical levels and indicators
This week, Bitcoin’s price action demonstrated significant volatility, rebounding from about $57,700 to $87,350 before shifting downward toward $75,000. At the time of reporting, Bitcoin hovered near $74,685, with the weekly candle still developing.
Technical analysis highlights several important support and resistance levels. On the downside, immediate support lies at $74,400, which the coin already tested this week. A close below this threshold could expose Bitcoin to additional declines toward $72,550 and the critical $69,000 area, coinciding with the 200-week exponential moving average (EMA).
On the upside, the first notable resistance appears at $76,040, followed by the 50-week EMA near $78,250. Should Bitcoin surpass these levels, $80,360 emerges as the next potential target, with the previous rally high at $87,350 serving as a significant benchmark.
Bitcoin’s technical landscape features immediate support near $74,400 and faces initial resistance at $76,040, as ongoing volatility keeps both bullish and bearish scenarios in play.
The 50-week EMA currently stands at $78,250, above the longer-term 200-week EMA at roughly $69,790. Both moving averages, which assign more weight to recent price movements, suggest that the broader uptrend remains intact, despite Bitcoin currently trading below the more responsive 50-week EMA.
Meanwhile, the Relative Strength Index (RSI) measures momentum on a scale from zero to 100, with Bitcoin’s RSI at 47.8. This value leans slightly bearish, remaining distant from the oversold threshold of 30. The Average Directional Index (ADX), indicating the strength of a trend, recorded a reading of 21.9. While this is below the standard 25-level associated with strong trends, related directional indicators point to a modest advantage for buyers.
