The crypto market saw its worst day after Bitcoin plunged nearly 10% to an all-time low, not seen since January. The popular crypto saw the largest price drop in two months. This deep dive has seen buyers return in full force. Analysts say BTC’s selling volume isn’t extreme relative to previous price downturns. Further downside is expected with technical indicators pointing toward the $30,000 – $32,000 support zone.
At the time of writing this article, Bitcoin had lost 8.29% of its value. It was trading at $36,412. Ether lost 6.69% in the last 24-hours and is changing hands at $2,742, as per data from CoinMarketCap. The biggest loser is Avalanche, having recorded a price drop of nearly 16% in the last 24-hours. Polkadot and Solana are down by 12%. Cardano lost 11.59%, Polygon is down 9.67%, Terra LUNA 31%, and Ripple’s XRP 6.39%. The crypto market has lost $140 billion – marking the market’s lowest capitalization since February.
In 2019, Bitcoin had returned to the upside when the market expected a capitulation event. The expected lows came much later in March 2020 following a macro top. As such, analysts believe that this time around, it could be similar. An expert highlighted that traders were not readying themselves for a capitulation and wave of selling. Earlier this year, inflows dropped sharply, while outflows continued an increasing trend.
If the severe trend continues and no terrible events are happening unexpectedly, the crab can be repeated. Analysts pointed out that selling peaked pace during the New York trading day. And this pushed the BTC price below $36,000, which triggered an uptick in long liquidations. Furthermore, there was a sharp price rejection at the $37,500 mark.