Bitcoin Price Tumbles Below $60,000, Market Wiped Out in Sudden Sell-Off
The cryptocurrency market experienced a dramatic downturn on Wednesday, with Bitcoin (BTC) suffering a significant price drop and dragging the entire market down with it.
Bitcoin Plunges, Liquidations Surge
Bitcoin, the world’s leading cryptocurrency, fell sharply after reaching a high of $62,700 earlier in the day. As of press time, BTC is trading below $59,000, representing a decline of over 6.5% in the past 24 hours. The price briefly dipped as low as $58,240, marking its lowest point since August 19th.
The sudden sell-off triggered a wave of liquidations in leveraged crypto derivatives positions. According to data from CoinGlass, over $313 million in liquidations occurred within the last 24 hours, with the biggest single liquidation reaching $12.67 million.
The exact cause of the sell-off remains unclear. However, analysts speculate that it could be a combination of factors, including profit-taking after recent gains and a lack of positive news to propel the market further.
Crypto Market Cap Sheds 6%, Top Altcoins Bleed
The broader cryptocurrency market also took a hit, with the global market capitalization dropping by 6% in the last 24 hours according to CoinMarketCap data. The bloodbath affected the top 20 altcoins as well, with most experiencing single-digit percentage losses. Even AI tokens, which had been surging recently in anticipation of the Nvidia Q2 earnings report, were unable to escape the downturn.
Long-Term Bitcoin Holders Remain Calm Despite Price Drop
Despite the short-term volatility, there are some positive signs for Bitcoin. On-chain data reveals that long-term Bitcoin holders, those who have held their coins for over 155 days, have been accumulating and are less likely to panic sell during market fluctuations. This suggests a potential long-term bullish outlook for Bitcoin.
Bitcoin Price Prediction: Will It Recover or Fall Further?
Analysts are divided on the future trajectory of Bitcoin. Some believe that the price may see further downside in the near term, potentially reaching the crucial $50,000 support level. Others point to historical patterns where Bitcoin peaked several months after the halving event, suggesting a potential bull run towards the latter half of 2025.
BTC/USD Technical Analysis: Bearish Signals But Room for Recovery
The technical indicators for Bitcoin are currently bearish, with the MACD gaining momentum in the bearish zone and the RSI falling below 50. However, a break above the $60,000 resistance level could signal a potential reversal and send the price higher in the coming sessions.
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