- Bitcoin trades at crucial support and any further selling pressure could see the price slipping to $24,000 and below.
- Over the last 24-hours, Bitcoin and Ethereum have witnessed more than $133 million in total liquidations.
After a good opening to this week, the world’s largest cryptocurrency Bitcoin (BTC) has given up on all of its Monday’s gains. The Bitcoin price has once again slipped more than 7 percent slipping under $30,000. As of press time, BTC is trading at $29,509 with a market cap of $562 billion.
The BTC price correction comes as the U.S. equity market witnessed another day of selling pressure. After a good start on Monday, all of the top three U.S. stock indices gave up gains by the end of the day. Bitcoin and crypto are likely to stay under selling pressure as the U.S. is set to release its inflation numbers for the month of May 22. In a note to investors, Adam Farthing and Collin Howe of crypto liquidity provider B2C2 wrote:
This market is languishing. Without a catalyst to the upside, current sentiment is likely to keep prices rangebound, with some clear and immediate risk of a break lower.
On the technical chart as well, Bitcoin is looking weak. Popular crypto analyst @SmartContracter explains that BTC is trading in a bear flag structure. Thus, the pattern is likely to lead to more losses in the future. The analyst also says that Bitcoin could tank to $24,000 and below creating a buying opportunity.
being around for 6 years staring at #btc almost every day has its benefits, bera flag structure now breaking down, don’t forget to buy the capitulation under 24k though. pic.twitter.com/R7G4inuKWQ
— Bluntz (@SmartContracter) June 7, 2022
Major Liquidations in Bitcoin and Ethereum
Along with Bitcoin, the broader crypto market has come under selling pressure. Altcoins have undergone even major corrections. The world’s second-largest crypto Ethereum (ETH) has also tanked by 7.5 percent and is currently trading at $1,755 with a market cap of $212 billion.
As per data from Glassnode, Bitcoin (BTC) and Ethereum (ETH) collectively witnessed liquidations of $133 million over the last 24-hours. However, there’s another interesting data to look after. Bitcoin (BTC) dominance has been growing while Ether (ETH) dominance has been shrinking.
The latest report from CoinShares shows that Bitcoin funds witnessed net inflows totaling USD 126 million last week. this took the total inflows for this year to more than $506 million. However, Ethereum (ETH) saw the ninth consecutive week of straight outflows. The CoinShares report notes:
Ethereum continues to suffer, with another week of outflows totalling US$32m. Ethereum has endured 9 straight weeks of outflows implying enduring negative investor sentiment.
Along with Bitcoin and Ethereum, another crypto that has undergone major correction is Binance’s native crypto BNB coin. The BNB price is down nearly 9 percent as the U.S. SEC has initiated a fresh investigation into Binance 2017-ICO sale for BNB tokens. Other altcoins like Cardano, Solana, and Polkadot have corrected anywhere between 7-10 percent.
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