Cryptocurrency Market Faces Steep Liquidation Amid Bitcoin and Ethereum Decline
By: Eliza Bennet
The cryptocurrency market has experienced significant turmoil, with massive liquidations taking place over the past 24 hours. The sudden drop in prices has erased a staggering $806.44 million in leveraged positions, a downturn not witnessed for several weeks. Of these liquidations, a significant portion impacted long positions, emphasizing the hard hit to bullish investors. Bitcoin alone saw its price tumble from an opening level of $114,163, reaching lows of $110,802.
The plunge also significantly affected Ethereum, showcasing a mirrored decline from $4,784 to $4,621. The pair have together witnessed more than 2.5% depreciation, vividly illustrating the bearish trend in the market. Bitcoin and Ethereum were majorly significant in these liquidations, each accounting for hundreds of millions of dollars alone. The parity between BTC and ETH in terms of liquidation points to the concentrated speculative interest in these two leading cryptocurrencies.
Major exchanges such as Bybit and Binance became focal points for these liquidation events. Bybit saw a staggering $304 million in liquidations, predominantly long positions, while Binance experienced over $209 million in liquidations, again skewed towards long positions at over 75%. Exchanges like OKX, Gate.io, and HTX also underwent substantial liquidation activities. Amid this turmoil, smaller altcoins, including Solana and Dogecoin, although impacted, saw lesser magnitudes of forced selling, highlighting their smaller leverage shares within the market.
Meanwhile, Bitcoin, attempting to bounce back from its steep fall to $110,650, has clawed its way back above $112,200. However, many resistances stand in its path to potential recovery, notably the $114,000 level, where a crucial bearish trend line is forming. Failure to breach these vital resistance points could trigger another downturn for BTC, with essential support around the $112,500 zone, below which further losses could materialize. As traders anticipate the market's next moves, the cryptocurrency sector grapples with this recent volatility, looking towards recovery.
