Crypto markets experience heavy losses as Bitcoin slumps 5% and altcoins face liquidations.
Crypto Leverage Flushout
In the past 12 hours, there have been $354 million in crypto liquidations, with the majority being long positions totaling around $313 million.
Over the past 24 hours, liquidations have reached over $400 million, resulting in 117,770 traders being liquidated.
Bitcoin prices have dropped by 4.4% daily, falling to $41,926. The asset experienced a rapid decline of almost 5% within two hours, reaching an intraday low of $41,783 from a high of $44,000.
Currently, BTC seems to have found support at its current levels, forming a rarely seen “Bart chart” formation. If it continues to decline, BTC could reach $39,500.
Crypto trader “RamenPanda” mentioned that flash dumps were anticipated and now completed. He added that Bitcoin would need a prolonged period of consolidation before resuming its uptrend and predicted that altcoins would start moving soon.
Others believe that this decline was a planned move to liquidate highly leveraged gamblers in the market.
No Altseason Yet
Altcoins are experiencing heavier losses compared to Bitcoin. The total market capitalization has decreased by around $80 billion or 4% in just a few hours.
Ethereum is down 5% at $2,238. Other altcoins are facing even larger losses.
XRP has fallen by 7% to $0.621, while Solana (SOL) is down 5.7% at $68.90.
Additionally, Cardano (ADA), Polkadot (DOT), Chainlink (LINK), Polygon (MATIC), Shiba Inu (SHIB), and Litecoin have all lost more than 6%.
Only a few altcoins, including Avalanche (AVAX), Immutable (IMX), and Injective (INJ), are seeing gains today.
Hot Take: Busy Week Ahead
The upcoming week in the US is expected to be busy on the economic calendar, with Fed meetings and inflation data likely causing higher market volatility.
Disclaimer: The information provided here is for informational purposes only and should not be seen as investing or trading advice. Always conduct your own research before making any investment decisions.
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