• Bitcoin’s 13% price fall over the past day led to a dip in the overall crypto market cap.
• Events of the past 24 hours shook the crypto market, with Bitcoin [BTC] experiencing a 13% dip over the past day.
• Longs wrecked massively, with $373.37 million worth of positions liquidated.
Bitcoin’s 13% Price Drop Impacts Crypto Market
Bitcoin’s sharp price plunge of 13% over the past 24 hours has impacted its overall market capitalization and caused significant losses among longs in the futures market.
Background
The events of the past 24 hours shocked the crypto world as Bitcoin dropped by 13%. This saw its price briefly touch $25k before recovering to trade at $26.5k, as of press time according to CoinMarketCap. Meanwhile, this caused a 6% drop in global crypto market capitalization and a 0.56% decrease in BTC’s dominance rate to 48.45%.
Short-term Sellers Primed for Downtrend
Analyzing BTC’s four-hour chart revealed that it was consolidating around the $29.4k zone after rejecting bearish order blocks between $29.8K-$30.3K. Previously, BTC had flipped bearish on its daily timeframe and this enabled short-term sellers to capitalize on an extended downtrend opportunity while volatility increased significantly and RSI dropped into deep oversold territory (reaching 5.31). CMF also dropped to -0.27 although it eased up slightly later (-0.18).
$373 Million Worth of Long Positions Liquidated
Long positions were heavily affected due to this sudden dip as data from Coinglass showed that around $373 million worth of such positions were liquidated within this period alone, leading investors/traders alike maintain a cautious approach throughout these events unfolding before them..
Fair Value Gap & Potential Retest
With current fair value gap being between $25.-1k-$26.-5k, there is potential for sellers pushing for another retest at the lower limit ($25.-3k) before bulls can regain control and initiate an extended rebound period again moving forward..