FET Plunges After $655M Crypto Liquidations; Bitcoin Holds Key Support

Market snapshot — liquidations hit altcoins, BTC relatively stable

Crypto markets saw roughly $655 million in liquidations over the past 24 hours after a Reuters‑reported remark by US President Trump about halting cooking oil trade with China and renewed US–China tariff tensions. The move drove an aggressive risk‑off response across smaller tokens: FET recorded its lowest daily close in nearly two years and is now trading below key pivot levels, while Bitcoin (BTC) has so far shown relative resilience around major support zones.

What drove the selling?

Geopolitical headlines and escalating trade measures have amplified macro risk sentiment, prompting deleveraging in crowded crypto positions. Rapid forced selling and stop‑loss cascades tend to hit thinner altcoin markets hardest — which explains FET's sharp deterioration — even as BTC and ETH attract buy‑the‑dip flows from longer‑term holders and institutional participants.

FET technical read — oversold but vulnerable

Key technical points for Fetch.ai (FET): the token breached the S3 pivot of $0.3310 and is testing immediate S4 support at $0.2270. Momentum indicators show RSI near 21 (deeply oversold) and a bearish MACD divergence, underscoring the risk of further downside if selling accelerates.

Risks: traders should be aware that breaking the S4 level could trigger additional stop‑loss cascades; thin liquidity in FET increases execution risk during fast moves.

Opportunities: the oversold condition raises the prospect of a short‑term relief rally or mean‑reversion bounce. A reclaim of the 50-day EMA test would be an early technical signal that momentum is stabilizing.

Bitcoin outlook — support the key to broader market calm

Bitcoin has acted as a liquidity anchor despite the altcoin stress. Institutional support and recent product developments have provided intermittent support, and BTC's ability to hold above major moving averages will be critical to limiting further contagion into larger market caps.

Market participants should monitor order‑book depth and derivatives funding rates; persistent long liquidations on exchanges increase the chance of additional volatility, while a stabilization in BTC can create a path for selective altcoin recoveries.

Practical guidance for traders

1) Risk management: tighten position sizing and avoid adding leverage into low‑liquidity altcoins during headline‑driven selloffs. 2) Technical triggers: look for RSI divergence, MACD crossovers, or reclaim of the 50‑day EMA on FET as early signals for tactical entries. 3) Execution: use limit orders and be mindful of slippage explained on shallow books.

Tools and automation to help execute the plan

Automated strategies can help remove emotion from fast market moves. For example, traders executing on spot and derivatives venues may consider using a Binance Trading Bot for automated entry/exit rules on altcoins, or a Bitcoin Trading Bot to manage risk and scale into BTC support levels. These tools complement disciplined manual oversight and can be configured to respect tight risk parameters during volatile sessions.

Actionable checklist

- Monitor FET for a reclaim of the 50‑day EMA or a sustained hold above $0.27 as potential signs of stabilization.

- Watch BTC support zones and funding rates; a hold in BTC reduces the odds of a broad market slump.

- Avoid adding leverage in low‑liquidity altcoins while macro headlines remain uncertain.

Conclusion

The $655 million liquidation episode highlights how quickly geopolitical headlines can trigger outsized moves in crypto, particularly among smaller tokens like FET. While FET's extreme oversold readings open the door for short‑term relief rallies, downside risk remains if technical supports fail. Bitcoin's ability to hold key support will be central to market sentiment and the pace of recovery.

Retail traders and investors can benefit from combining solid risk management with automated trading tools to respond faster in volatile conditions. Explore automated trading options at PlayOnBit and learn how a Trade Assistant Bot can help implement defined rules across positions.

Try our AI trading bot on PlayOnBit to test automated strategies, reduce emotional decision‑making, and manage risk across crypto and forex trading scenarios.