Bitcoin, Ethereum, Dogecoin Slide As Middle East Tensions Escalate After Hezbollah’s Israel Attack: Trader Says Sentiment Will Remain Bullish As Long As King Crypto Stays Above This Level – Grayscale Bitcoin Mini Trust (BTC) Common units of fractional undivided beneficial interest (ARCA:BTC)

Leading cryptocurrencies plunged Sunday as geopolitical tensions soared in the Middle East following Hezbollah’s missile attack on Israel.

What Happened: After moving sideways in the $60,000 zone for most of the weekend, Bitcoin began to retrace late in the afternoon. The leading cryptocurrency slipped below $59,000 as Hezbollah rained missiles on Israel after days of warnings and speculations over an imminent attack.

The second-largest cryptocurrency, Ethereum, also dipped below $2,600, though its pullback was less severe.

In the past 24 hours, 62,754 traders were liquidated, with the total liquidations at $161.83 million. About $124 million in bullish bets was wiped out. 

Bitcoin’s Open Interest fell nearly 3%. The drop in OI, coinciding with a drop in price, indicated the liquidation of bullish longs.

The market slipped back into the “Extreme Fear” mode, according to the Cryptocurrency Fear & Greed Index. This was a sign that investors were worried, potentially leading to a sell-off surge.

Top Gainers (24-Hours)

The global cryptocurrency market stood at $2.05 trillion, declining 3.75% in the last 24 hours.

Stock futures edged lower Sunday evening. The Dow Jones Industrial Average Futures dropped 50 points, or 0.12%, as of 8:45 p.m. EDT.  Futures tied to the S&P 500 dipped 0.08%, while Nasdaq 100 Futures slid 0.01%.

The market hoped to recover from last week’s downturn, precipitated by the unwinding of the Japanese yen “carry trade and fears of a slowdown in economic activity.

Investors would monitor key inflation-related data this week, as July’s producer price index and consumer price index were slated to be released.

According to CME’s FedWatch tool, traders have priced in a 51% probability of the Federal Reserve lowering the interest rate during September’s FOMC meeting.

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Analyst Notes: Widely-followed cryptocurrency analyst Captain Rational stated that Bitcoin was still at a premium despite its downswings over the last week.

“All narratives in shambles, Bitcoin would be called a crash hitting 39,000, but anything above 38,000 is bullish from a 200-week moving average standpoint,” the trader stated.

Another market analyst, Trader Fred, noted a “death cross” on Bitcoin’s daily chart. 

For the uninitiated, technical analysts view the death cross as a measure of recent price weakness. 

“That’s not good but let’s not deny the possibility of it being a fake out,” the trader cautioned.