Bitcoin Plunges below $57K amid Market Decline

Bitcoin Plunges below $57K amid Market Decline

By: Eliza Bennet

Bitcoin's price has plummeted to its lowest since February, plunging below the $60,000 mark and hitting $56,900 as of report time. This represents a 23% decrease from its recent all-time high of $73,000 before halving. The price drop is part of a 7% overall decrease in the crypto market as investors prepare for the Federal Open Market Committee (FOMC) meeting. This collapse has heavy implications, especially as large short positions were held above $61,000, signifying almost $4 billion worth of leverage in notional value.

Trading of Bitcoin on Binance, a reputed cryptocurrency exchange, posted several buy walls in the order book down to around $50,000. Each yellow line reportedly represents at least 200 Bitcoins, translating to roughly $11.5 million. Over the past 30 days, nearly $13 billion worth of leveraged short positions have been established between $57,000 and $72,000. Meanwhile, Ethereum also experienced downward movement, slipping below $3k anticipating negative news from the FOMC meeting.

If Bitcoin fails to recover above the $60,400 resistance zone, more losses might be expected. Immediate support on the downside is near the $59,500 region. The first significant support is $59,100, with further declines possible towards the $58,000 and subsequently, the $56,400 support zones.

A strong reversal above the $62,000 resistance level could rebound the price. A clear move above the $62,500 resistance zone could suggest an upward movement with a potential rise towards $64,000. Investors should remain cautious and attentive to market developments in the coming period.

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