In a significant downturn, Bitcoin has fallen below the crucial $90,000 mark, triggering a wave of liquidations across the cryptocurrency market. This recent decline has led to over $600 million being wiped from the accounts of nearly 150,000 traders within the last 24 hours.
As the leading digital asset struggles to maintain its footing, it is now trading around $90,180, which is just below the 50-day exponential moving average (1D50EMA). This indicator often serves as a key level of support or resistance in the broader market trend, highlighting the current volatility in the sector.
According to analyses, the next support levels for Bitcoin are projected to be between $84,500 and $80,500, raising concerns about further declines. Prominent analysts, including those from CrypNuevo, are monitoring these levels closely for potential opportunities for a liquidity run and subsequent rebound.
During this turbulent time, Ethereum has also faced significant challenges, leading the liquidation totals with about $250 million lost. Overall, the market has seen a stark reaction to ongoing macroeconomic uncertainties, pushing investors to seek safer assets such as gold, which continues to hit record highs.
The recent liquidations represent the second consecutive day of heavy losses for traders, still falling short of the nearly $900 million in liquidations reported on January 19. The largest single liquidation recorded was a staggering $6.80 million involving the ETH/USD pair on the Hyperliquid platform.
Interestingly, the majority of Ethereum”s liquidations came from long positions, with around $234 million out of the $250 million total being liquidated from traders betting on price increases. This trend mirrors the broader market sentiment, where approximately $547 million of the total liquidations were linked to long positions.
Despite the prevailing market conditions, notable figures such as Michael Saylor continue to engage in substantial Bitcoin acquisitions. Recently, he purchased 22,305 BTC for $2.13 billion, averaging around $95,500 per coin, indicating a contrarian approach in a bearish market.
As the cryptocurrency landscape evolves, traders and investors must remain vigilant and adaptable to navigate these tumultuous waters.
