Bitcoin faced a sharp decline on Thursday, breaching the $70,000 threshold and leading to a staggering $1.5 billion in liquidations across the cryptocurrency markets. As a result, the entire crypto landscape has shifted to a markedly bearish sentiment.
The current prices for leading cryptocurrencies are as follows: Bitcoin (BTC) is at $65,948.45, Ethereum (ETH) is trading at $1,927.92, Solana (SOL) is valued at $82.26, XRP is at $1.24, Dogecoin (DOGE) is priced at $0.09185, and Shiba Inu (SHIB) is at $0.055875.
Recent analyses reveal that the plunge has sent trader sentiment into a tailspin. Notably, trader Altcoin Sherpa highlighted that Bitcoin is revisiting its 200-week exponential moving average (EMA) for the first time since 2023, a crucial long-term support level. While temporary dips below this threshold may occur, he suggests that the $60,000 range could serve as a reasonable entry point for accumulation.
Conversely, Crypto Tony cautioned that Bitcoin has previously broken below the 200-week EMA, notably in 2022, when it experienced a substantial drop of approximately 44%. If history were to repeat itself, this could suggest a potential decline towards the $35,000 mark, which he has identified as a possible low for the current cycle. He emphasized that while interim relief bounces are likely, this scenario should be treated as a risk rather than the base case.
On the liquidation front, Crypto Reviewing reported that Bitcoin”s fall below $67,000 triggered around $1 billion in liquidations just on that day, following an additional $500 million the previous trading session. He underscored the importance of maintaining the $63,000 to $67,000 range as a key liquidity zone to prevent further losses. Should the market stabilize, there is considerable liquidity positioned between $72,000 and $78,000, indicating a potential revisit to that area.
As the market reacts to these developments, traders and investors are urged to remain vigilant and consider the historical precedents that may influence future price movements.
