Bitcoin, Ethereum, Dogecoin Tumble As $1.15B Worth Of Crypto Liquidations Loom: Analyst Predicts 55% Correction For King Crypto To $35K Levels

Major cryptocurrencies took a tumble on Tuesday evening after the price of BTC corrected by 7% following a rally to a new all-time high of $69,324 at the Coinbase exchange.

What Happened: Bitcoin plummeted by $5,000 on March 5, triggering widespread volatility in the market. 

This reaction came on the heels of Bitcoin reaching a historic all-time high, a moment that bullish investors had been anticipating since November 2021.

The rise in Bitcoin’s value was largely catalyzed by the approval of Bitcoin ETFs in January, propelling it beyond the previous November 2021 peak.

Data from CoinGlass reveals that in the last 24 hours, over $884 million in long positions were liquidated, impacting a total of 311,448 traders and resulting in a combined liquidation value of $1.15 billion. 

The most significant single liquidation order, amounting to $9.00 million, took place on Bitmex XBT-USD. Specifically focusing on BTC, long positions worth $250 million faced liquidation, while ETH experienced liquidations totaling over $209 million.

Top Gainer (24 Hour)

The global cryptocurrency market cap now stands at $2.35 trillion, showing a 7.04% decrease in the past 24 hours.

Stocks declined for the second consecutive session on Tuesday, with drops in prominent tech companies such as Apple contributing to a further retreat.

The Nasdaq Composite experienced a 1.65% decrease, closing at 15,939.59 as technology stocks bore the brunt of the market’s downturn. The Dow Jones Industrial Average also lost 404.64 points, or 1.04%, ending the day at 38,585.19. Furthermore, the S&P 500 saw a 1.02% dip, settling at 5,078.65.

Apple encountered an almost 3% decline following a report from Counterpoint Research, which revealed a sharp drop in iPhone sales in China during the first six weeks of 2024.

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Analyst Notes: Cryptocurrency analyst Michael Van de Poppe advises investors to remain calm amidst the volatile market conditions, stating, “Just sit down and relax.”

He adds, "Bitcoin ran from $25,000 to $69,000 in less than four months. Altcoins are on cycle lows in their BTC valuations. Liquidity flushes happen, and these corrections are harsh and painful. The markets are at the start of a bull. Use the dips. Wait."

Pseudonymous analyst Rekt Capital raised the question whether the current price cycle has experienced an “acceleration” due to the pre-halving move. 

"Something to consider as we enter a new era for Bitcoin's price action — we've never really seen price action like this before," he said.

Crypto analyst Aksel Kibar presented a chart illustrating Bitcoin’s surge beyond the $69,000 mark, labeling this milestone as the “FOMO stage.”

Kibar identified BTC trading within the $65,000 and $68,000 ranges, moving closer to the November 2021 peak of approximately $69,000. He cautioned investors against succumbing to the fear of missing out at this level.

He said,"$BTCUSD I don’t think this is a breakout to an all-time signal. Don't FOMO this part of the move."

Another on-chain analyst Ali Martinez said, "Bitcoin MVRV indicator is at 19.57% right now! Since February 2021, each time it crossed the 18% threshold, BTC price plunged by 24% to 55%. Traders should monitor this trend as it anticipates a steep price correction!"

A 55% drop from its present value would bring Bitcoin down to the price point of around $35,000.

The MVRV (Market Value to Realized Value) indicator in cryptocurrency measures the ratio of a crypto asset’s market capitalization to its realized capitalization, serving as a tool to assess if the asset is over or undervalued. It helps investors understand market behavior by comparing the price at which the coins were last moved to the current price.

Photo by Igor Faun on Shutterstock

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