Bitcoin dropped 58,400 in the early morning, and the entire network exploded with 360 million magnesium.
The cryptocurrency market is not calm this week! Bitcoin has fallen from a high of $64,521 in the past two days, reaching a low of $58,402 at the time of writing this morning (25th), and is currently rising back to around $60,500.
The leveraged contracts market is also facing some liquidation after Bitcoin's fall triggered a broader selloff in the cryptocurrency market. CoinGlass data shows that nearly 90,000 people have been liquidated in the perpetual leverage contract market in the past 24 hours, with a total liquidation amount of approximately US$360 million, of which US$294 million was liquidated by long orders (buyers).
In terms of currencies, long positions in Bitcoin ($BTC) were liquidated by $171 million, while long positions in Ethereum ($ETH) were liquidated by $77.44 million.
Image source: CoinGlass
Bitcoin once fell to around $58,400, and the entire network liquidated $360 million.
Bitcoin price analysis prediction: Will it fall to 50,000?
According to Markus Thielen, founder and analyst of 10x Research, yesterday afternoon, from the perspective of technical indicators, Bitcoin is moving according to a "double top pattern." The chart he shared shows Bitcoin with resistance at $71,908 and support at $63,379.
Thielen predicted that after the current failure to break through $70,000 and the key support level was lost, Bitcoin may shift from the current range trading (between 60,000 and 70,000) to a double-top pattern and trigger a deeper correction. The target may be $50,000.
Source: X/10x Research
Analyst: Bitcoin’s double top pattern is forming and may fall to 50,000
However, well-known analyst Rekt Capital believes that this is the stage bottom of the bull market. According to past halving bull market cycles, this bull market has almost completed the 40% stage. If history repeats itself, the market should usher in a period of accelerated growth.
Source: X/Rekt Capital
Analyst reveals Bitcoin halving cycle chart
Why did Bitcoin plummet? Mentougou Exchange (Mt.Gox) lost money and caused panic
Why Bitcoin suddenly dropped to near $58,000? Many foreign media believe that it may be related to the market panic caused by the Mentougou Exchange (Mt.GOX) announcing that it was about to lose money.
Mt.Gox is a bankrupt exchange that has recovered approximately 140,000 Bitcoins. Yesterday, Mt. Gox restructuring trustee Nobuaki Kobayashi announced that he expects to start compensation payments for Bitcoin and Bitcoin Cash ($BCH) in July this year.
Image source: Mt.Gox announces the reason for Bitcoin’s plunge? Mentougou Exchange (Mt.Gox) lost money and caused panic
After the repayment, will more than 140,000 Bitcoins crash into the market in one fell swoop? Alex Thorn, head of research at crypto asset manager Galaxy, estimates that 75% of creditors will choose to accept early payments in July, with representatives distributing 95,000 bitcoins, of which 65,000 may be paid to individual creditors. But he doesn't think creditors will sell off Bitcoin easily at this moment, because they have resisted the temptation of debt acquirers for 10 years, and the degree of "diamond hand" may exceed market expectations.
Thorn also learned that the vast majority of institutional-level creditor partners are high-net-worth Bitcoin holders, so they are adding to their Bitcoin holdings at discounts rather than arbitraging in search of quick profits.
The market is so afraid of a crash! Mt.Gox Bankrupt Exchange Moves 9.6 Billion Bitcoins, Should You Really Worry?
What is Mt.GOX exchange?
Mt.Gox, a Japan-based cryptocurrency exchange that operated from 2010 to 2014, declared bankruptcy after hackers stole 840,000 Bitcoins (worth $460 million at the time). As of 2024, Mt. Gox has recovered 141,686 Bitcoins, 143,000 Bitcoin Cash ($BCH) and 69 billion yen.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
