Bitcoin Plummets to 2-Month Low, Sparks $1 Billion Market Liquidation:

Bitcoin Plummets to 2-Month Low, Sparks $1 Billion Market Liquidation:

The significant decline in the pole and flag pattern triggered a substantial wave of selling in Bitcoin, a highly reputable and fully decentralized cryptocurrency. However, multiple other factors contributed to a tumultuous situation in the cryptocurrency market, coinciding with the overall crypto market capitalization reaching $1.05 trillion.

The downfall of Bitcoin resulted in a massive wave of liquidation across the digital currency market, marking one of the most unfavorable days of the year. During the past 24 hours, the liquidation surpassed $1 billion, with BTC accounting for over $500 million of the total liquidation.

The root cause of this extensive sell-off was driven by noteworthy news affecting the market. The bearish trend in Bitcoin throughout the week was potentially influenced by a report suggesting that Elon Musk's SpaceX, over both the previous year and 2021, divested its Bitcoin holdings, totaling $373 million.

Source: Tradingview 

Bitcoin's market capitalization experienced a sharp overnight decline of over 7.5%, currently resting at $505 billion. Concurrently, the prevailing price is hovering around $26,000. Notably, the recent sell-off led to the liquidation of long positions totaling more than $380 million.

Source: Coinglass

As anticipated earlier by Finwatchers, the disruption of the pole and flag pattern indeed triggered a substantial sell-off. Consequently, the price of BTC plummeted to a level unseen in the past two months, dipping below the $26,000 range. Presently, the $25,000 threshold emerges as a robust support and potential recovery zone.

Previous Next

This information is for educational purposes only and does not constitute investment advice. No person should rely on it to make any investment. Investing carries risks, including the loss of capital. All opinions expressed are subject to change without notice. Past performance is not indicative of future results. Always seek the advice of a licensed investment professional before making any investment.