Crypto Sell-Off Continues as Bitcoin, Ether Slide; Altcoins Show Oversold Signals
Bitcoin and ether extended losses on Monday, reflecting broader market weakness, while some altcoins entered oversold territory, hinting at a possible short-term rebound.
Bitcoin (BTC$88,535.99) fell about 4% to $86,100, and ether slipped below $3,000 after a 6.7% decline in 24 hours. The sell-off pushed the CoinDesk 20 Index down 4.3%, with all members in the red. Traditional markets also weakened, with the Nasdaq Composite dropping 2.6% for a second consecutive day amid concerns over a potential AI bubble and ahead of Tuesday’s U.S. labor data, including November nonfarm payrolls.
“Consensus forecasts point to roughly 50,000 new hires, less than half of September’s 119,000, with downside risk evident,” said Derren Nathan, head of equity research at Hargreaves Lansdown.
Derivatives Highlight Bearish Sentiment
Crypto’s losses have been exacerbated by thin liquidity. Derivatives data underscore persistent bearish pressure:
- Over $660 million in leveraged futures were liquidated in 24 hours, mainly long positions.
- BTC futures open interest rose above 700,000 BTC, suggesting increased short positions; XRP futures OI climbed to 1.96B XRP.
- BTC and ETH put options remain pricier than calls, reflecting ongoing downside concern, with the $85K BTC put among the most traded contracts.
- Traders favored strategies including BTC put spreads, straddles, and ETH put butterflies.
Altcoins Eye Potential Rebound
The altcoin market has struggled through a two-month correction. ASTER, ONDO, and STRK fell more than 10% in 24 hours. Several tokens now show oversold RSI readings, indicating potential for a modest bounce ahead of U.S. employment figures. XRP, SOL, and ADA are approaching key support levels that previously marked local bottoms, offering possible entry points for investors.
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