U.Today – A major liquidation has occurred over the past 24 hours, triggering a massive sell-off that has seen the price fall below $50,000 and below the critical $60,000 mark. Many traders and investors in the market have lost faith in Bitcoin as a result of this drastic drop that amounts to a staggering $10,000 drop in its value.
The massive liquidation of $1 billion in the cryptocurrency market was the main cause of this sell-off that had a cascading effect and significantly lowered Bitcoin prices. The chart highlights the strong selling pressure that dominated the market with a noticeable increase in volume. Bitcoin is now in a risky situation and is testing the 100-day EMA support level as a result of the abrupt price drop.
Prominent Binance traders have shown tenacity: nearly 70% of them are long Bitcoin and betting on a future rise. However, the sharp drop and significant liquidation activity suggest that overall market sentiment remains bearish.
This highlights the ongoing conflict between conventional stores of value such as gold and bitcoin. The overall state of the market also contributed significantly to bitcoin’s fall. Markets are in a panic as a result of Warren Buffett’s decision to sell shares, including those of Apple (NASDAQ:) and hold $277 billion in cash. The NASDAQ’s nearly 6.5% drop and the biggest drop in Japanese stocks in more than eight years have created a perfect storm for bitcoin.
In free fall
Ethereum is plummeting, mimicking Bitcoin’s sharp decline while posing its own struggles. The price of ETH has plummeted over the past day, breaking important support levels and causing significant concern among investors. ETH is currently trading at around $2,356, as the chart shows, after a significant drop that was mainly due to institutional selling pressure.
Ethereum has not been immune to the recent $1 billion-plus market-wide sell-off. The sell-off has increased the downward momentum by triggering a chain reaction of sell orders. The 200-day EMA is a major focal point for ETH, which is testing important support levels similar to Bitcoin. If this level is broken, further declines are possible down the line that could result in even larger losses.
The selling of ETH by institutional investors has caused the markets to fall more severely. Large holders appear to be selling heavily, as evidenced by substantial outflows from exchanges shown by liquidation heatmaps and on-chain data. A major reason for Ethereum’s current drop is this institutional sell-off and the massive $1 billion liquidation in the market.
Furthermore, the overall state of the market also contributed to Ethereum's collapse. A domino effect has been observed across the entire cryptocurrency market as a result of the panic caused by Warren Buffett's significant cash holdings and stock sales, as well as the 6.5% drop in the Nasdaq and the biggest drop in Japanese stocks in over eight years.
declinations
The price of Shiba Inu has dropped dramatically, from around $0.00002 to $0.000012. The sudden decrease in value has investors worried as it suggests that the cryptocurrency may be in trouble.
SHIB’s ability to recover is in doubt due to the significant sell-off that brought it to these lows. With SHIB breaking below important support levels, the chart clearly illustrates a bearish trend. The 65% price drop from its peak earlier this year is a clear indication of mounting struggles. The fact that the memecoin price is close to the crucial support zone of $0.00001 adds to the pressure.
A drop below this barrier can result in additional losses and possibly add another zero to its value, which would be a sign of pessimism for investors. The picture painted by on-chain metrics is equally bleak. In the last 24 hours, around 1.5 trillion transactions have been made between whales, which does not exceed the usual volume transacted between large wallets, which is an indicator of a lack of buying or selling power.
This article was originally published on U.Today
