๐๐๐ #CryptoMarket Selloff: $330M Liquidated As Bitcoin Price Fell Under $62K, Here's Why
The #cryptocurrency market experienced a sudden and widespread sell-off during the early hours of the US trading session, resulting in over $30 million liquidated within just one hour. Bitcoin's price took a hit, dropping from $63,340 to a low of $61,600, marking a 6% intraday decline.
Ethereum also faced downward pressure, briefly dipping below the $3,000 mark due to a flurry of liquidation orders triggered by negative sentiment ahead of the Bitcoin halving. Several other top altcoins, including BNB, SOL, XRP, DOGE, TON, ADA, and SHIB, witnessed price falls of 2-3% within the same hour.
Notably, #Solanaโฉ and #Toncoin prices experienced more significant declines, plummeting by 14% and 15%, respectively, over the past 24 hours.
Factors Behind Bitcoin's Sudden Decline
- The correction in Bitcoin's price ahead of the halving, combined with broader macroeconomic and geopolitical concerns, contributed to the downward pressure on BTC. Additionally, the absence of significant buying activity from institutional investors and large-scale traders exacerbated the sell-off.
Data from Coinglass indicates that over $330 million worth of liquidations occurred across the crypto market during this sharp correction. Long positions accounted for $260 million of these liquidations, while short positions saw nearly $70 million being liquidated on Tuesday alone.
More than 109,000 traders were affected by liquidations, with the largest single liquidation order occurring on the OKX crypto exchange, where someone swapped ETH to USD valued at $5.97 million.
Technical indicators, such as the Bollinger Bands and Ichimoku Cloud, suggest a bearish outlook for BTC. The Bollinger Bands indicate a downward trend, with the price failing to break above the 20-simple moving average, while the Ichimoku Cloud shows the price continuing to move below support levels, accompanied by increasing selling pressure as the trend reverses and the cloud widens.
Source - coingape.com