Bitcoin’s price took a tumble, dipping below $69,000, alongside other major cryptocurrencies like ether, solana, and dogecoin, which also experienced notable losses in the past 24 hours. The drop was significant enough to trigger a wave of liquidations, particularly among leveraged long positions, totaling nearly $175 million in losses.
The downturn in prices was a sharp reversal from the optimism seen after Monday’s rally. Bitcoin, which had briefly surpassed $71,000, slipped to a low of $68,580 before settling around $69,000, marking a 4% decline. Ether, the second-largest cryptocurrency by market cap, also fell by almost 4% to below $3,500, while altcoins such as solana and dogecoin lost between 6% to 7% of their value.
The broader crypto market mirrored these losses, with the CoinDesk 20 Index (CD20) dropping by 3.2% over the same period. The sudden downturn caught many leveraged traders off-guard, leading to the liquidation of almost $200 million worth of derivatives trading positions, the majority of which were long positions betting on price increases.
The crypto market saw Bitcoin’s price buckle below $69,000, leading to $175 million in liquidations for crypto bulls
Despite Monday’s breakout above $70,000, some analysts remain cautious about predicting further gains. Joel Kruger, a market strategist at LMAX Group, pointed out that Monday’s high was below the record highs set in March, suggesting that prices could remain subdued before attempting to reach new highs. He highlighted a potential resistance level around $71,800, indicating the possibility of corrective price action before another push for record levels.
In summary, while recent price movements have been volatile, with significant liquidations and price corrections, Bitcoin and other cryptocurrencies continue to attract interest and demonstrate resilience amid market uncertainties. Investors should remain vigilant and consider various factors, including technical analysis and market trends, when making investment decisions in the cryptocurrency space.
