Crypto traders are now focusing on the $25,000 level for Bitcoin, below which options positioning suggests another cascade of liquidations could hit. 

“With limited catalysts to push Bitcoin higher in the short term, a fall below $25,000 could put bears in charge, and if the rout in global risk assets continues, Bitcoin could face further downside,” said Josh Gilbert, market analyst at trading and investing firm eToro.

A Wall Street Journal report citing documents that Elon Musk’s SpaceX has sold off its Bitcoin holdings after writing down $373 million also weighed on sentiment. It wasn’t clear from the Journal report when SpaceX had sold its Bitcoin.

Eoin Treacy's view

Bitcoin is volatile. It is prone to large moves and these are to be expected when dealing with the asset. That means position sizing has to take account of the potential for volatility. The price is now testing the region of both the 200-day and 1000-day MAs as well as the upper side of the underlying base formation. This is a major decision point for the price.