With the Bitcoin price drop, altcoins triggered heavy crypto liquidations of up to $1.76 billion, with top players such as Ethereum (ETH), Solana (SOL), XRP, Dogecoin (DOGE), Ethereum (ETH), Solana (SOL), XRP, Dogecoin (DOGE) each correcting between 6-12%. With Bitcoin facing multiple rejections at the $100k levels, investors are wondering if the altcoin party is over.
Altcoins see heavy dumping in broad market sell-off
Since September, this has been the fastest exit in altcoins as traders realigned their positions to spot any bearish opportunities. Today’s Bitcoin price drop below $95,000 has led to larger liquidations in the overall crypto market. Blockchain analytics platform Santiment observed that cryptocurrencies that made significant gains during the bull run of the last two months have faced severe declines in the last 24 hours.
However, it added that if individual traders succumb to fear and start unloading their holdings, the market could witness a quick rebound as buying opportunities emerge. On the other hand, crypto analyst IncomeSharks noted that the sub-sector managed to maintain the supertrend as professional traders bought the dips.
What do analysts say?
IncomeSharks expressed optimism about the recent pullback in altcoin prices, calling it a potentially bullish development for the market. “This is the most bullish thing to happen to altcoins,” the analyst said. It has also led to strong crypto liquidations, now approaching $2 billion. The analyst noted that the correction allowed the market to extract new buyers while maintaining Supertrend support levels, a bullish indicator.
According to another crypto analyst Rekt Capital, the overall altcoin market faced rejection from a historically important resistance level. However, the analyst suggested that the pullback may be less severe this time and the $425 billion resistance mark is weakening. This trend could signal growing momentum for a potential breakthrough in the near future
Liquidation amount at 1.7 billion dollars
According to Coinglass data, crypto liquidations rose to $1.76 billion in the last 24 hours, with $1.58 billion in long liquidations and $185 million in short liquidations. Moreover, the cryptocurrency market experienced significant turbulence in the last 24 hours, with 583,647 traders liquidated on exchanges. The largest single liquidation order took place on Binance in the ETH/USDT pair with $19.69 million. Commenting on this development, popular crypto analyst Michael van de Poppe said:
This is a sudden drop in altcoins. Some of them fell by 30% during the day. Don’t worry, this will bounce back quickly, you want to see such a big crash and liquidity wiped out. Moving forward.
After today’s crash, Bitcoin’s dominance went up another notch. Crypto analyst Benjamin Cowen noted an important milestone in Bitcoin dominance, noting that it recently reached its previous wedge level when stablecoins are excluded. Cowen noted that as long as Bitcoin dominance remains below this level, altcoin-Bitcoin (ALT/BTC) trading pairs are structurally stable.
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