Bitcoin and Ethereum Price Plunge: Key Metrics Behind the 10.8% and 14.5% Drops

  • Bitcoin’s price drop led to resistance at break-even levels for short-term holders.

  • Surge in Open Interest and spot inflows added strain, causing high liquidations.

  • Both BTC and ETH show potential for a bullish reversal despite recent declines.

Bitcoin and Ethereum saw significant price drops over the past two days. Bitcoin fell 10.8% from $65,062 to $58,053, while Ethereum experienced a steeper 14.5% decline, moving from $2,792 to $2,384, according to CryptoQuant data. These movements highlight the volatile nature of the cryptocurrency market and shed light on key factors behind the recent downturn.

5 Key Charts on the Recent Price Drop

Bitcoin dropped from $65,062 to $58,053 (10.8%) over the last two days, while Ethereum saw a down move from $2,792 to $2,384 (14.5%).

These are the most important charts on what happened. 🧵 pic.twitter.com/9mEoQ3CFsN

— CryptoQuant.com (@cryptoquant_com) August 28, 2024

Short-term holders played a role in creating a resistance level at their break-even price. As Bitcoin’s price dropped earlier this month, these investors faced an average 17% loss. When the price returned to their average cost basis, many sold at break-even, …

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