Bitcoin slipped below $73,000, erasing three months of gains, and Zcash (ZEC) emerged as the biggest loser among major cryptocurrencies, falling close to 15% and moving under the $1,000 psychological barrier.
Price dynamics and technical outlook
ZEC traded around $985.70, with the 0.5 Fibonacci level at $969.45 identified as immediate support. A break below this level could expose the next support zone near $800.05, while a successful defense of $1,000 might allow a move toward $1,138.95. Key resistance levels include $1,000, $1,138.85 (0.618 Fibonacci) and $1,380.04.
Derivatives market shows deleveraging
Open interest in ZEC futures dropped from roughly $3.1 billion to $2.23 billion, a decline of about 28%. The reduction coincided with the price decline, suggesting traders are closing positions rather than adding new short exposure.
Liquidation landscape
The liquidation heatmap indicated a larger concentration of short‑liquidation leverage above the current price of about $988.70, particularly between $1,007 and $1,055, with additional exposure near $1,100. Conversely, long‑liquidation clusters were smaller below the price. This creates a potential short‑squeeze zone if price rises above $1,000, while a drop below $969 could trigger long‑position liquidations.
Outlook
Recovery for ZEC may depend on regaining the $1,000 level, broader Bitcoin strength, and renewed institutional interest in privacy‑focused assets. Ongoing market uncertainty and ETF withdrawals could extend the correction if the threshold is not reclaimed.
