Bitcoin and Ether Extend Losses as Altcoins Show Oversold Signals
Bitcoin and ether continued their decline on Monday, reflecting broader weakness in equities, while some altcoins flashed oversold signals that may hint at a near-term bounce.
Bitcoin (BTC$88,535.99) dropped roughly 4% to $86,100, and ether fell back below $3,000 after a 6.7% slump in 24 hours. The sell-off pushed the CoinDesk 20 Index down 4.3%, with every constituent token in the red. Traditional markets also slid: the Nasdaq Composite lost 2.6% for a second consecutive day amid concerns about a potential AI bubble and ahead of Tuesday’s U.S. labor data, including November’s nonfarm payrolls.
“Consensus forecasts suggest about 50,000 new hires, less than half of September’s 119,000, and the risk appears skewed to the downside,” said Derren Nathan, head of equity research at Hargreaves Lansdown.
Derivatives Show Persistent Bearish Pressure
Crypto’s underperformance since October has been amplified by thin liquidity. Derivatives metrics highlight ongoing bearish sentiment:
- Over $660 million in leveraged futures were liquidated in 24 hours, mostly long positions.
- Global open interest in BTC futures surpassed 700,000 BTC, the highest since November 21, signaling an influx of bearish bets. XRP futures OI rose to 1.96B XRP, the highest since October 11.
- Put options for BTC and ETH remain pricier than calls, reflecting persistent downside risk. The $85K BTC put has emerged as the second-most popular option behind the $100K call.
- Active trading strategies include BTC put spreads and straddles, and ETH put butterflies.
Altcoins Await Catalyst
The altcoin market has struggled after a two-month corrective phase, with ASTER, ONDO, and STRK losing over 10% in 24 hours. Oversold RSI readings for several tokens suggest the market may be poised for a modest rebound ahead of U.S. employment data. XRP, SOL, and ADA are approaching historical support levels that have previously marked local bottoms, offering potential entry points for investors.
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