The cryptocurrency market is encountering a new wave of pressure as Bitcoin fluctuates after sharp price declines and increased liquidations.
Overview of the Current Situation in the Cryptocurrency Market
In recent days, the cryptocurrency market has experienced difficulties, with a total market cap of around $3.12 trillion, down 1.03% over the past day. Bitcoin is attempting to recover from a drop below $99,000, bouncing back to $101,000, while Ethereum also fell to $2,100.
Scale of Liquidations and Geopolitical Concerns
According to BeInCrypto, this decline was triggered not only by overall market conditions but also by news of Iran potentially closing the Strait of Hormuz, adding more fear to the market and leading to nearly $950 million in liquidations. Analyst CryptoPatel reported that over 181,000 traders were liquidated in 24 hours, totaling $693 million, with the largest single loss amounting to $35.45 million on a BTC long position.
Outlook for Bitcoin and Ethereum
Trader Matthew Dixon believes current BTC moves may be part of a corrective structure and are showing early signs of bullish divergence. Meanwhile, Ethereum has found support at the $2,120-$2,180 level, but the price remains far from the resistance level of $2,400-$2,450, leaving traders waiting for further market actions.
The cryptocurrency market continues to face tough times with uncertainty stemming from both internal and external factors. Recovery expectations remain, but breaking below key levels may lead to further negativity.
