The Crypto Market Party Comes to an End as Bitcoin Price Drops
The Bitcoin (BTC) price has experienced a significant drop of nearly 8%, trading at $67,345 with a market cap of $1.322 trillion. This decline in Bitcoin’s value has had a domino effect on the broader cryptocurrency market, resulting in a loss of over $200 billion within the last 24 hours. The selling pressure across the market is attributed to the announcement of higher-than-expected PPI inflation data by the US.
$450 Million of Bitcoin Longs Liquidated
Bitcoin’s value dipped below the $68,000 mark, reaching $67,788, representing a 7.53% decline over the past 24 hours, according to data from Binance. During this time, there have been liquidations totaling $576 million across the network, with long positions accounting for $448 million of this amount. This widespread liquidation activity has affected 167,000 individuals, as reported by Coinglass data.
Santiment analysis reveals that Bitcoin’s price has dropped below $70,000 for the second time in just three days. The on-chain transaction volume indicates increased activity on the network. However, there is a positive aspect as holders are beginning to decrease once again, signaling a necessary phase of capitulation.
Additionally, Santiment data highlights whale accumulation in recent weeks. Significant stakeholders in Bitcoin have played a crucial role in driving the recent surge in market capitalization over the last five weeks. Wallets holding between 10 and 10,000 BTC have accumulated 154.16K coins since February 4th, amounting to approximately 0.665% of the total supply. The current value of these holdings exceeds $10.9 billion.
More Pain Ahead for BTC Investors
Crypto analyst CrediBULL Crypto provides insights into the recent price action, suggesting that the anticipated upward momentum has not materialized and a potential downward trend is unfolding. The recent drop in prices has resulted in a reduction of built-up Open Interest (OI) in the market. However, the analyst believes that there is still room for further downside movement before reaching a presumed “baseline.” A potential support level in the range of $63,000 to $64,000, referred to as the “green zone,” is identified as a logical area where a bounce or reversal in price could occur.
CrediBULL Crypto’s analysis indicates that this identified range may coincide with the complete elimination of remaining OI buildup.
Hot Take: Brace Yourself for More Turbulence in the Crypto Market 📉
The recent drop in Bitcoin’s price and the subsequent impact on the broader cryptocurrency market suggest that more turbulence lies ahead. As an investor or crypto enthusiast, it’s essential to stay informed and be prepared for potential market fluctuations. Here are some key takeaways:
1. Market Volatility:
- The current market volatility indicates that price swings and sudden drops are expected.
- Be mentally prepared for these fluctuations and avoid making impulsive decisions based on short-term movements.
2. Watch for Support Levels:
- Identify key support levels based on technical analysis or expert opinions.
- These support levels can act as potential buying opportunities or areas where a rebound may occur.
3. Whale Activity:
- Monitor whale activity and accumulation patterns, as they can provide insights into market trends.
- Whale accumulation may indicate confidence in the long-term prospects of cryptocurrencies.
4. Stay Informed:
- Keep up-to-date with the latest news, market analysis, and expert opinions.
- Join reputable cryptocurrency communities to engage in discussions and gain valuable insights.
Remember, investing in cryptocurrencies carries inherent risks, and it’s crucial to do your own research and consult with financial advisors before making any investment decisions. The crypto market is known for its volatility, but it also presents unique opportunities for those who approach it with caution and knowledge.
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