Bitcoin was up 0.7% at $74,559 on Monday after touching its lowest level in more than two months, as U.S. stocks rebounded and oil prices fell ahead of a key inflation report.
The S&P 500 rose 1.9% and the Nasdaq Composite gained 2.2% by 11:30 a.m. Eastern, while Brent crude fell 4.3% to about $94 a barrel. The broader market advance came even as Nvidia shares slid.
The Bureau of Labor Statistics is due to release the October consumer price index on Tuesday. The report lands after a stronger-than-expected jobs report pushed traders to price in roughly an 80% chance of a quarter-point Federal Reserve interest rate hike in December.
Crypto liquidations top $1.2 billion
Bitcoin's rebound followed a wave of forced selling in crypto derivatives. A CoinGlass snapshot showed $1.2 billion in liquidations over 24 hours, with about $1.04 billion coming from longs, or bets on higher prices. Bitcoin positions accounted for $324 million, nearly 87% of which were longs.
Exchanges liquidate positions when traders can no longer cover their losses with the collateral they have posted.
Bitcoin's weekly chart: support and resistance levels
Bitcoin rallied from roughly $57,700 to $87,350 before sliding back toward $75,000. The coin was trading at $74,685 after an early dip to $73,667, with the week's candle still open.
The 50-week exponential moving average sits near $78,250, above the 200-week EMA at about $69,790. Both averages give more weight to recent prices, with the shorter one responding faster. Their order still favors the longer-term uptrend, though Bitcoin is trading below the faster average and the gap has narrowed considerably, increasing the possibility of a death cross in the future.
The Relative Strength Index stands at 47.8, close to the midpoint with a slight tilt toward sellers and some distance from 30, the level traders typically call oversold. The Average Directional Index reads 21.9, below the commonly used 25 threshold for a strong trend, even though its accompanying directional indicators give buyers a slight edge.
On the way down, $74,400 is the first area where buyers could step in. Bitcoin has already traded through it this week, so a weekly close below it would put $72,550 in view, followed by the $69,000 area around the 200-week EMA.
On a rebound, the first area where sellers could stall the move is near $76,040, followed by the 50-week EMA around $78,250. A move through that average would put $80,360 back in play, with the prior rebound high near $87,350 beyond it.
