Bitcoin Hits Two-Month Low Amid Intense Market Sell-Off
Bitcoin's price action has sent shockwaves through the crypto market as it plunged below $91,000, marking its lowest level since late November. After briefly touching $96,000, the bears seized control, driving the primary cryptocurrency to $90,700, triggering widespread panic and liquidations.
This sharp decline has erased weeks of gains and left the crypto market reeling. Altcoins have suffered equally, with major assets like Ethereum,
$XRP , and
$ADA experiencing significant double-digit losses.
Bitcoin's Weekly Performance: From Optimism to Despair
The week started on a positive note for Bitcoin, surging above $100,000 on Monday and hitting $102,000 on Tuesday. However, bullish momentum was short-lived as BTC plummeted by over $10,000 within 48 hours, reaching $91,250 on Thursday.
Although bulls attempted to reclaim higher ground on multiple occasions, every push toward $96,000 was met with fierce resistance. The final rejection earlier this morning sent Bitcoin below the critical $91,000 level, hitting a low of $90,700—its worst performance in nearly two months.
Altcoins in Freefall: Double-Digit Losses Across the Board
The bearish sentiment has not spared altcoins, with nearly all major cryptocurrencies recording steep declines:
Ethereum (ETH): Dropped by 6%, now trading below $3,100.
XRP: Suffered a similar correction, falling under $2.4.
Other significant losers include ADA, SOL, SUI, AVAX, LINK, SHIB, XLM, ICP, and AAVE, all of which have seen double-digit losses.
Liquidation Frenzy: Over $500M Wiped Out in 24 Hours
The market turbulence has led to mass liquidations, with over 200,000 traders liquidated in the past 24 hours. The total value of these wrecked positions is approximately $500 million, with the largest single liquidation on Binance exceeding $8 million.
The Liquidation Heat Map highlights the intensity of the sell-off, with leveraged positions wiped out across exchanges as volatility spikes.
Key Observations from the Crash
1. Failed Breakouts Above $96,000:
Multiple attempts to regain momentum above this level were rejected, signaling bearish control.
2. Critical Support Levels Breached:
BTC’s plunge below $91,000 raises concerns of further declines if bullish support doesn't hold.
3. Altcoin Market Meltdown:
Widespread losses indicate a broader market correction, with no signs of immediate recovery.
What’s Next for Bitcoin and the Market?
Bullish Scenarios:
$91,000 Support:
A successful defense of this level could stabilize Bitcoin and prevent further declines.
Recovery Attempts Above $96,000:
A breakout above $96,000 could restore bullish momentum and signal a potential recovery.
Bearish Risks:
Failure to Hold $91,000:
Breaching this level may trigger a freefall toward $85,000 or lower, exacerbating market fears.
Continued Altcoin Weakness:
Prolonged altcoin sell-offs may further erode investor confidence.
Conclusion: Caution Amid Chaos
Bitcoin’s dramatic fall below $91,000 and the accompanying $500M liquidation event underscore the volatility of the crypto market. With both bulls and bears fighting for control, the coming days will be critical in determining the direction of the market.
Investors are advised to exercise caution, manage leverage carefully, and monitor key support and resistance levels as the market navigates this turbulent phase.
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