Bitcoin plummets sharply, with liquidation scale in 24 hours far exceeding 312; what’s the outlook for the market?

Early this morning, the price of Bitcoin plunged sharply to $94,000, causing the market to collapse instantly, dragging down altcoins as well. The scale of this liquidation has already surpassed the 312 event in 2020 and the 519 event in 2021, especially with high-leverage long positions suffering heavy losses, and altcoins have become the main victims of the liquidation wave.

The main reason behind this crash is the risk exposure of high-leverage trading. Leverage traders were concentrated liquidated during the market's violent fluctuations, creating a chain reaction. Unlike the external factors of the 312 event, this time it is more a result of the internal leverage going out of control in the market. This once again reminds us that in a highly volatile market, managing leverage is really important.

What’s the outlook for the market?

Key levels of #比特币 and #以太坊 : Bitcoin needs to stabilize above $100,000 to maintain market sentiment; Ethereum needs to retest the resistance level of $4,050 to boost confidence.

Do altcoins have a chance?: Although the liquidation for altcoins is severe, those with solid fundamentals and strong community support may have room for rebound after the pullback.

Institutions are in action: The influx of institutional funds and improvements in on-chain data may provide a foundation for market recovery, while retail investors' high-leverage operations remain a major risk point.

According to CoinGlass data, the overall performance of the crypto market at the end of the year and the beginning of the year has been relatively flat, with increased volatility but unclear trends. A reminder, the crypto market is highly volatile, especially in extreme conditions like recently, improper use of leverage can easily lead to liquidation. For upcoming investments, pay attention to the macro environment and market data, stabilize risks, and lay a solid foundation for long-term layout.

Source: MarsBit

Disclaimer: The content of this article is for reference only and does not constitute investment advice.