Over the last three hours, the crypto market is facing yet another brutal crash and is down 7.67% eroding more than $150 billion dollars in investors’ wealth.
The world’s largest cryptocurrency Bitcoin (BTC) is down 8% and trading at $38,530 levels. This is for the first time since August 2021 that the BTC price is trading under $40,000 levels. The immediate support for Bitcoin is $37,500. If this is broken as well, we might be heading to $30,000 and below. Bitcoin critic Peter Schiff writes:
Bitcoin has finally broken the neckline of a head-and-shoulders top. The scary part for the longs is that the pattern projects a move below $30,000. Once that level is breached Bitcoin will have completed a massive double top. From there a crash below $10,000 is highly likely.
Also, the Net Unrealized Profit Loss for Bitcoin is the lowest since July 2021, reports Glassnode.
NUPL is currently trading at 0.43, the lowest level of network profitability since July 2021.
— glassnode (@glassnode) January 20, 2022
The Fed has started initiating some quick measures to control inflation and the ripple effect is seen across equity and crypto markets. The next week’s FOMC meeting could be crucial to decide the market momentum.
Heavy Liquidations In Ethereum and Altcoins
Bitcoin competitor Ethereum is down 9% and has slipped under its crucial support of $3,000. As of press time, Ethereum (ETH) is trading 9% down at a price of $2812 and a market cap of $341 billion. Popular crypto-journalist Colin Wu writes:
On the morning of January 21st (UTC+8), Ethereum fell below $3,000, and the entire network’s liquidation amounted to $223 million in 4 hours. Liquidation was concentrated on Binance OKEx FTX and Bybit.
A heavy correction has ensued across the altcoin space. Almost all of the top ten cryptocurrencies are down 8-10%. Polygon’s MATIC is also down under $2.0 for the first time in many weeks.
As bears take full control, it’s difficult to say what could be the short-term projection. However, for HODLers and long-term players, it could be a good time to fill their bags.