Daily Crypto Signals: Bitcoin Slides to $64,000, XRP Faces Bearish Pattern and Whale Pressure
Bitcoin erased all weekend gains Monday, plunging over 4% to $64,300 as fear gripped the crypto market, while XRP faces a potential 42% drop
Quick overview
- Bitcoin dropped over 4% to $64,300 on Monday, erasing weekend gains amid a wave of risk-off sentiment in the crypto market.
- XRP is showing bearish signs with a potential drop to $0.80, influenced by a bear pennant formation and significant whale outflows to Binance.
- The Crypto Fear and Greed Index hit its lowest point of the year, with over 136,000 traders liquidated in the last day, primarily from leveraged long bets.
- Despite the current downturn, some analysts suggest a cautious optimism for Bitcoin's recovery, citing a rebound in network hashrate and changes in hedge fund positions.
Bitcoin BTC/USD erased all weekend gains Monday, plunging over 4% to $64,300 as fear gripped the crypto market, while XRP XRP/USD faces a potential 42% drop to $0.80 amid a bear pennant formation and $45 million in whale outflows to Binance.
Crypto Market Developments
Crypto markets were nasty on Monday as a wave of risk-off sentiment raced through the industry. With more than 136,000 traders liquidated in the last day, the Crypto Fear and Greed Index fell to its lowest points of the year. According to CoinGlass, 92% of the $458 million in total liquidations were leveraged long bets. A coordinated effort by hackers, hired influencers, and short sellers targeting World Liberty Financial’s USD1 stablecoin and WLFI token added to the chaos. World Liberty Financial is the cryptocurrency project that President Donald Trump and his family support.
The attack ultimately failed, according to the business, despite a sudden 7% decline in WLFI and USD1 momentarily losing its dollar peg. Although it reduced its estimate of fresh US Treasury bill demand from stablecoins to $800 billion to $1 trillion from the $1.6 trillion it expected in April 2025, Standard Chartered kept its optimistic $2 trillion stablecoin market value forecast for 2028.
Bitcoin Drops to $64,300 Amid Liquidations
The comeback in Bitcoin over the weekend was short-lived. Bitcoin saw a dramatic reversal on Monday, dropping more than 4% to $64,300 in just two hours after reaching $68,600 on Saturday. Bitcoin is now 48% below its October all-time high of $126,000 and 5.5% below the 2021 bull-market peak of $69,000 as a result of the decline. After plunging below $60,000 on February 6, the coin is currently at the bottom of a range-bound channel that some experts are now keeping an eye on as a possible cycle low.
Some indications present a cautiously hopeful argument for a recovery toward $75,000 notwithstanding the gloomy price action. The network hashrate has entirely recovered from a 25% decline in January, demonstrating the resilience of bitcoin mining activity. More significantly, according to last week’s CFTC report, big speculators, including hedge funds, have changed their position on CME Bitcoin futures from net short to net long. Analyst Tom McClellan claims that this change in positioning has historically preceded notable market bottoms. Wider economic issues are still a wild card, especially with regard to AI sector valuations before Nvidia’s earnings report on Wednesday.
XRP Displays Several Bearish Signs: $1 Next Target?
XRP (XRP) is displaying danger indicators in a number of ways. On its two-day chart, the altcoin has created what analysts are referring to as a bear pennant, a pattern that usually ends with another steep leg down following a period of close consolidation. A verified collapse below pennant support might open a path down $0.80, or a nearly 42% loss from current levels. The structure arose after a sharp sell-off to the $1.12 zone. A close below $1.20 would give the bears complete control and place $1.11 and then $1.00 squarely in the crosshairs, according to analyst BitGuru, who cited $1.22 as a significant support level.
The pressure is being increased by whale activity. Large holders accounted for more than 88% of the more than 31 million XRP that was moved to Binance on Saturday, the biggest inflow to the exchange since January 20. Wallets with above 1 million XRP sent 14.5 million tokens to the exchange, accounting for the largest portion. The transactions were described by CryptoQuant analyst Darkfost as “a sudden potential sell-side pressure of nearly $45 million that warrants close monitoring,” warning that if the selling continues, XRP might not be able to make a significant rebound anytime soon.
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