Bitcoin’s first daily $20,000 candle emerges: What’s next?

Cryptocurrency markets soared over the weekend, with Bitcoin setting a number of firsts.

The decline began on Friday as investors reacted to macroeconomic concerns, with Bitcoin plummeting from a high of $122,600 to $107,000.

The decline continued on Saturday, with Bitcoin recording its third straight day of declines since October 6th.

Amid Saturday’s selloff, the market capitalization of cryptocurrencies fell to $3.76 trillion, with $19.36 billion liquidated across digital assets, making it the largest crypto liquidation event in history, according to data from CoinGlass.

At the time of writing, the total market capitalization of crypto assets was lower, currently at $3.72 trillion, as most crypto assets are still traded on a daily and weekly basis.

Bitcoin remains in the red, down 0.25% in the past 24 hours and down 11% for the week.

Bitcoin sets record

Bitcoin set a new record amid a market decline, albeit not in price. Bitcoin fell to about $107,000 from $122,600 on Friday, marking its first-ever daily candlestick of $20,000. But it was a red candle, rather than the normally expected green one, highlighting its crash.

Similarly, a new record was set in the futures market, but it wasn’t very exciting either, resulting in the largest open interest elimination. According to Glassnode, the Bitcoin futures market experienced the largest single-day liquidation of open interest in history, with more than $11 billion in positions being liquidated. This highlights the massive deleveraging in the market, with a significant number of traders posting losses.

Bitcoin’s next major support level is $100,000, and a close below this would mark the end of the bullish cycle of the past three years. The Bitcoin options market reflects this, with the highest number of “put” or sell strikes at $110,000, followed by $100,000, according to data from the Deribit platform.