Crypto Winter? $520 Million Liquidated Across the Crypto Market
Ethereum Suffers Heavy Losses, Bitcoin Falls Deeper Below $30K
According to data posted by Coinglass, more than 138,000 traders were liquidated over the last 24 hours and the total value exceeds $520 million. Ethereum traders were the most affected, as their losses amount to over $236 million, while Bitcoin losses are over $125 million. The biggest liquidated order was placed on Okex (ETH – USD – SWAP) and was worth $3.30 million.
After spending some time hugging the $2,000 S/R level, Ethereum (ETH) broke down and is now trading at $1,775 after a dip to $1.1712. At the time of writing, ETH/USD is showing rejection around the $1,700 level: the candle is currently bullish and has a long wick and small body. However, the daily candle is not closed, so we may see a different picture by the end of the day. If $1,700 support is broken, ETH will be in free-fall at least until $1,550 (March 2021 low); the next major support level is located at $1,300 (February 2021 low).
Bitcoin is trading at $29,012 and the bulls seem to have lost the battle for $30,000, but this will remain an important barrier for future price action. The apex coin is down more than 4.0% over the last 7 days but price action is sluggish and it looks like BTC is gearing up for a strong move, which may send it towards the $25,000 area unless the bulls can regain control of the $30,000 level.
Chart Analysis – BTC/USD
After the spike that sent Bitcoin to $25,400 on May 12, the pair started to trade inside a descending bearish triangle, which is a continuation pattern. Such a chart formation usually results in a new leg of the downtrend and the fact that the price sits below a major S/R level ($30K), increases the probability of a bearish move.
At the moment, there’s very little indication that a strong bullish reversal may take place. The Relative Strength Index was oversold but that didn’t do almost anything for the bulls. The MACD showed a bullish cross but the momentum didn’t increase at all. The price moved above $30,000 but it soon returned below it and the zigzag continued.
With all this in mind, it’s fair to assume that Bitcoin’s price will continue to decline even further, once it exits the bearish triangle seen on the chart. All the round numbers below the current price may act as support zones. Always keep in mind that Bitcoin is a volatile beast and its price can reverse on a dime.
