Bitcoin (BTC) has experienced a significant drop in value, reaching $56,555, marking its lowest point in two months. The market has seen substantial liquidations, totaling over $170.8 million for BTC in the past 24 hours. Analysts express concerns about the potential for a further dip as Bitcoin's price action displays bearish signals.
Bitcoin Market Plunges as Liquidations Escalate, Signaling Potential Bearish Phase
The global crypto market is reeling as Bitcoin (BTC), the world's most valuable cryptocurrency, plummets to a two-month low of $56,555, marking a significant setback in its recent momentum. The massive sell-off has triggered a surge in liquidations, surpassing $511.23 million in the past 24 hours. Notably, over $170.8 million worth of BTC and $135.2 million of Ether (ETH) have been liquidated, further amplifying the market's volatility.
Analysts have raised concerns over this sharp price downturn, suggesting it may signal a bearish phase in the market. Michaël van de Poppe, founder and CEO of trading firm MNTrading, warns of potential further "downsides" in BTC charts if the correction persists. His analysis indicates that prices could fluctuate within the $56K-$58K range.
"Bitcoin is at the end of the correction. It's already down 20% from the highs and we'll have some more downside to happen from here," van de Poppe tweeted. "If the correction continues, then I think the green zones between $56-58K are essential to watch."
Crypto analyst Rekt Capital echoes these sentiments, describing the current dip as the "deepest retrace in the cycle." However, he notes that it has yet to match the duration of the longest pullback. His analysis draws parallels between this downside and the 2016 post-Bitcoin halving cycle.
The second largest cryptocurrency, ETH, has also taken a hit, plummeting by 9% to a low of $2,844. A host of altcoins have experienced double-digit losses over the past 24 hours, including SOL (10.10%), TON (11.6%), Bitcoin Cash (10.6%), and PEPE (15.7%). Memecoins such as SHIB (13.2%), DOGE (12.8%), FLOKI (10.7%), and BONK (10.25%) have also suffered significant setbacks.
This market correction has cast a pall over the crypto space, with investors and traders reassessing their positions. While some see it as a buying opportunity, others remain cautious, fearing that the market may continue to decline. As the market volatility persists, it is crucial for investors to exercise prudence and carefully manage their risk exposure.
