Bitcoin plunges over, leading to millions in liquidations

Bitcoin, the biggest digital currency, just lost 2000 dollars per hour, and the price has dipped down massively. The market started experiencing huge spikes in volatility that, in the end, resulted in $127 million of long liquidations. 

Expert analysis of Bitcoin price crash

A continuous decline in price was observed, as Bitcoin was losing the value of just over 2 dollars by the end of the month. The price of this crypto asset has dropped by 5% in the past 24 hours. Waves are part of the last stage of accumulation for Bitcoin. 

Source: Coinmarketcap

Van de Poppe has expressed the unusually low volatility price movements that have been dominant since the 29th of February, and even up to this point, something has been witnessed even within the present. He has even further stated that the recent crash brought Bitcoin to a key crypto support level, which suggests continued accumulation of the digital asset. 

The final accumulation period is still happening.

That includes: low volatility & chop. #Bitcoin dropping back to the important area of support.

Not holding? Then we're looking at $52-55K which would be the final stage of the correction. pic.twitter.com/F3o7UvL6jq

— Michaël van de Poppe (@CryptoMichNL) May 10, 2024

In his opinion, the support level hasn’t held at the current spot, which could lead to further downside, with Bitcoin touching the $52-55K area. He was attempting to define the final correction level, that is the moment of observing Bitcoin’s actions around those levels.  Thus, the coming days will tell whether this suggestion will be accurate. 

 Bitcoin crash impacts  

The flash crash generated a synced mixed response among the cryptocurrency community. Although some investors, who were unaffected and saw it as a temporary upheaval of Bitcoin’s sustained momentum, raised alarm about escalating uncertainties and that the scenario may deteriorate, others however, were very concerned about the heightened volatility and the likely falls. 

Technical analysts are currently analyzing the crucial support and resistance levels to make predictions of the steered short-term movements of Bitcoin. The importance of parameters such as the trading volume, the market environment, and the influence that institutions have on the Bitcoin price will be essential to understand whether the currency has the ability to maintain its support buildup or price breakout will be the outcome. 

Bitcoin’s price varied too much often which in turn affected the crypto market as a whole, sending other digital asset prices up and down as well with market confidence and user trading activities. Hence, it is needed to understand what happens to Bitcoin after the correction period as this would have the chance for the other cryptocurrencies to follow the direction where traders will be most interested.