The crypto market faced renewed selling pressure on Tuesday, November 3, as geopolitical tensions flared again in the Middle East. Total crypto market capitalization fell 1.7% following reports of military actions on Iran’s Qeshm Island, reviving fears of a prolonged conflict and pushing oil higher.
The broader market impact of the Donald Trump Iran strikes pushed crude oil prices up by more than 1.6%, with Brent crude above $106.95 a barrel, as hopes for an immediate diplomatic resolution quickly faded.
Leverage Flush Triggers $380M in Liquidations
As energy supply fears triggered a classic “risk-off” environment across global financial assets, Bitcoin led the crypto slide.
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Bitcoin price fell 1.9% over 24 hours to trade near $76,950, extending its 7-day losses to 4%. Altcoins felt equal pain, with Ethereum (ETH) slipping 1.2% to $2,265 and Solana (SOL) declining 2.5% to $92.25.
The sharp move caught overly bullish derivatives traders off guard. According to CoinGlass, $382.48 million in leveraged positions were liquidated across crypto exchanges within 24 hours.
Long positions accounted for $341.81 million of the total wipeout, with Bitcoin traders absorbing nearly $100 million in forced closures.
Weak Demand Adds Pressure
The recent pullback highlights underlying fragility within the crypto market. A report from CryptoQuant noted that Bitcoinās rebound faded after reaching $78,700 on Monday, when hopes for US-Iran talks and Binance restarting withdrawals after the historic hack supported sentiment. The rally stalled below $79,000, and a later recovery attempt failed as the Nasdaq closed down 1.1%.
BTC has also slipped below the $77,140 cost basis of 1ā3 month holders, which raises the risk of selling into rebounds. CryptoQuantās Apparent Demand metric has dropped into negative territory, below its 30-day average.
CryptoQuantās report said some Bitcoin spot buying persists but has not absorbed futures selling and liquidations. However, as U.S. midterm elections take place and Trump Iran strikes continue, the macroeconomic backdrop remains uncertain and could fuel market volatility.Key
Bitcoin Price Support Levels to Watch
CryptoQuant analysts see $76,600ā$76,700 as key support. Bitcoin needs to reclaim $77,100ā$77,200, then $77,400ā$77,600 for sustained recovery. Falling liquidations and steady spot buying would help support a recovery.
However, as US midterm elections take place and Trump strikes on Iran continue, economic uncertainty remains high, leaving markets vulnerable to further volatility.
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