Altcoins have followed the price of Bitcoin down below $95,000, with long positions in the overall cryptocurrency liquidation volume surging.
With the decline in Bitcoin's price, the altcoin market also experienced a significant pullback. Major cryptocurrencies such as Ethereum (ETH), Solana (SOL), XRP, and Dogecoin (DOGE) saw price drops ranging from 6% to 12%. This wave of pullback resulted in a market liquidation scale of up to $1.76 billion, raising investor concerns about the short-term outlook for cryptocurrencies.
Bitcoin has encountered resistance multiple times at the $100,000 mark, and market sentiment has become more cautious. Investors are closely monitoring the performance of altcoins, trying to determine whether the previous surge is nearing its end or if a new rebound opportunity is imminent.
Altcoins have been severely impacted in the overall market sell-off.
Since September, the altcoin market has experienced its fastest pullback, with many traders adjusting their positions to seek buying opportunities at lower prices. Bitcoin's price dropped below $95,000 today, further exacerbating the scale of market liquidations, leading to increased turmoil in the entire cryptocurrency market.
According to observations from the blockchain analysis platform Santiment, cryptocurrencies that surged significantly during the bull market over the past two months have generally seen notable declines in the past 24 hours. However, Santiment also noted that if retail traders choose to sell their assets due to panic, the market might be able to rebound quickly, as opportunities for buying at lower prices are attracting capital.
On the other hand, cryptocurrency analyst IncomeSharks is optimistic about the recent price pullback in altcoins. He believes that this decline is an important phase of market consolidation, which may have positive effects. "This is the most favorable development in the history of the altcoin market," he pointed out. Professional traders have begun to accumulate positions at lower prices, and the market's liquidation amount has approached $2 billion, building momentum for a potential rebound in the future.
Analysts pointed out that this market adjustment has not only attracted new buyers but also helped maintain the super trend support level, which is often seen as a bullish signal. The correction in market sentiment may lay the groundwork for the next round of increases.
Another well-known cryptocurrency analyst, Rekt Capital, also analyzed the situation, pointing out that the entire altcoin market currently faces a historically significant resistance level of $42.5 billion. This resistance level has long suppressed the market, but the recent market adjustment has been relatively mild, suggesting that the suppressive effect of this resistance may be weakening.
If this trend continues, Rekt Capital believes the altcoin market is likely to break through this key resistance level in the future, further enhancing the market's upward momentum. This may also provide more positive signals for recent altcoin investors, especially as capital gradually shifts from the adjustment phase to a new round of upward cycles.
The cryptocurrency liquidation amount surged to $1.76 billion.
According to data from Coinglass, the liquidation amount in the cryptocurrency market surged to $1.76 billion over the past 24 hours, with long liquidations amounting to $1.58 billion and short liquidations totaling $185 million.
The situation has taken a turn for the worse, with significant turmoil in the cryptocurrency market over the past 24 hours, resulting in a total of 583,647 traders being liquidated across exchanges. The largest single liquidation order occurred in Binance's ETH/USDT pair, amounting to $19.69 million. Commenting on this development, renowned cryptocurrency analyst Michael van de Poppe stated:
"This is the flash crash of altcoins. Some altcoins dropped by 30% in a single day. Don't worry, this situation will reverse quickly; you wouldn't want to see such a massive crash and the disappearance of liquidity. Let's keep moving forward."
After today's crash, Bitcoin's dominance has risen another step. Cryptocurrency analyst Benjamin Cowen emphasized an important milestone for Bitcoin's dominance and pointed out that excluding stablecoins, Bitcoin recently reached its previous wedge level. Cowen noted that as long as Bitcoin's dominance remains below this level, the trading pairs of altcoins against Bitcoin (ALT/BTC) are structurally stable.
As of the time of writing, the BTC price has dropped by 2.6% to $96,905, with a market capitalization of $1.917 trillion. The liquidation amount for Bitcoin within the past 24 hours has surged to $189 million, of which long liquidations account for $149 million.
On the other hand, according to technical charts, Ethereum's price fell by 6.62% to $3,684. Cryptocurrency market analysts believe these declines still present buying opportunities, as ETH may reverse its trend again.
