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.

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