Altcoins Crash Lead to $1.76 Billion in Crypto Liquidations, What’s Next?

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As a seasoned researcher with years of experience navigating the tumultuous waters of the cryptocurrency market, I must admit that today’s events have been nothing short of a rollercoaster ride. The rapid correction we’ve seen in altcoins, coupled with Bitcoin‘s price drop, has once again reminded us all that the crypto market is anything but predictable.

As Bitcoin’s price decreases, many other cryptocurrencies like Ethereum (ETH), Solana (SOL), XRP, and Dogecoin (DOGE) have also significantly dropped by 6-12% each. This has led to significant crypto liquidations totaling over $1.76 billion. With Bitcoin failing to surpass the $100K mark on multiple occasions, investors are starting to wonder if the rally in altcoins is nearing its end.

Altcoins See Heavy Dumping in Broader Market Sell-off

Over the past few months, there’s been a rapid selling off of altcoins by traders who are realigning their investments in search of potential discounted buys. The recent dip in Bitcoin’s price below $95,000 has triggered increased liquidations across the entire cryptocurrency market.

According to the blockchain analysis company Santiment, cryptocurrencies which saw significant price increases over the past two-month bull market have experienced considerable declines within the past 24 hours.

Yet, it was also mentioned that if retail investors yield to fear and sell off their assets, there could be a rapid market recovery due to increased buying opportunities. Conversely, crypto expert IncomeSharks observed that the alternative cryptocurrency sector held its ground, allowing skilled traders to take advantage of price drops by purchasing them.

As a cryptocurrency investor, I find myself buoyed by IncomeSharks’ positive outlook regarding the current dip in altcoin prices. They view this as a potentially bullish sign for the market. To quote their analysis, “This is the most bullish thing that could happen to altcoins.” This perspective, combined with the recent surge in crypto liquidations approaching $2 billion, has me feeling optimistic about the future of altcoins.

The analyst observed that the adjustment in the market encouraged the arrival of fresh investors, all the while preserving Supertrend’s supportive thresholds, indicating a positive outlook.

According to crypto expert Rekt Capital, the broader altcoin market has been unable to surpass a significant resistance point in its history. Yet, he posits that this recent drop might not be as intense compared to earlier instances, which could mean the $425 billion resistance level is losing strength. This pattern might hint at an approaching breakthrough attempt in the near term.

Crypto Liquidations Soar to $1.76 Billion

According to Coinglass’s latest report, cryptocurrency liquidations reached an astounding $1.76 billion over the past day. Of this total, a significant $1.58 billion was from long positions being forcedly closed, while short liquidations accounted for approximately $185 million.

Over the last day, the cryptocurrency market experienced a series of volatile swings, resulting in 583,647 traders being forced out of positions on various platforms. The biggest individual liquidation order took place on Binance in the ETH/USDT market, totaling approximately $19.69 million. Notably, this assessment was echoed by renowned crypto analyst Michael van de Poppe, who commented on the situation.

This is a sudden significant decrease in the value of altcoins, with some dropping by as much as 30% today. Fear not, these declines often rebound quickly, making events like this valuable learning experiences. Let’s move forward!

After today’s Bitcoin drop, its influence has slightly increased. Crypto expert Benjamin Cowen pointed out a notable achievement in Bitcoin’s dominance, mentioning that it recently reached the previous wedge threshold without considering stablecoins. Cowen added that as long as Bitcoin’s dominance stays below this mark, altcoin markets relative to Bitcoin (ALT/BTC) appear structurally sound.

As we speak, the price of BTC is dropping by 2.6% and currently stands at approximately $96,905. Its total market value amounts to an impressive $1.917 trillion. Over the past day, Bitcoin’s liquidation figures have significantly increased to about $189 million, with long positions accounting for $149 million of those losses.

Conversely, the cost of Ethereum has dropped by 6.62% to reach approximately $3,684, according to the data on the technical chart. Some crypto market experts think that these drops represent good opportunities for investment, as they predict that Ethereum could change direction and rise again.

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2024-12-10 08:54