After days of trading sideways, the cryptocurrency market witnessed a significant downturn, with Bitcoin’s price plummeting below $29,000, marking its lowest level in a month and a half. The sudden move left almost $100 million in liquidations across the market.
During the preceding days, the cryptocurrency market, known for its volatility, had surprisingly remained relatively calm. Bitcoin, in particular, had been range-bound between $29,000 and $29,500, with the $29,000 mark acting as a resistance level.
However, this tranquillity was shattered during the early Asian trading session on Tuesday. Bitcoin experienced a sharp decline of almost $1,000, dropping from its position well above $29,000 to $28,750 on Bitstamp. This marked its lowest price since June 21.
While the cryptocurrency managed to recover a few hundred dollars after the initial slump, it still remains in the red. Unfortunately, this downturn also impacted most altcoins, with Dogecoin, Solana, Litecoin, Bitcoin Cash, Avalanche, Polygon, and Stellar all witnessing declines ranging from 3% to 5% in a single day.
The heightened volatility poved detrimental to over-leveraged traders, especially those with long positions. Data from CoinGlass revealed that the total value of liquidations over the past 24 hours reached nearly $100 million, with long positions being responsible for 85% of that amount.
In the aftermath of the downturn, more than 35,000 traders faced liquidation, experiencing losses in their positions. The largest single liquidation order occurred on Bybit and amounted to over $1 million.
The sudden price drop has raised concerns among investors and traders, with uncertainty looming over the future direction of the market. Analysts and experts are closely monitoring the situation to determine whether this downturn is a temporary correction or the beginning of a more extended bearish trend.
As the cryptocurrency market continues to evolve, investors are reminded of the inherent risks associated with trading and the importance of carefully managing leverage to avoid significant losses in times of high volatility.
While the market’s resilience has been tested, many remain optimistic about the potential for recovery in the long term, as the cryptocurrency space has historically shown resilience and the ability to bounce back from challenging market conditions. However, it is essential for participants to remain cautious and informed while navigating through these turbulent times.
