Bitcoin Market Analysis: Market Crashes Following Consolidation
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The cryptocurrency market continues to affirm its immensely volatile nature as Bitcoin (BTC) and the altcoin sector suffered a massive crash over the past 24 hours. This crash comes following a protracted period of consolidation in the market.
Given that Bitcoin finds it hard to stay still for too long, bears took advantage and dragged the benchmark cryptocurrency lower.
BTC traded around the $37k region earlier yesterday before recording an unexpected $3k dump. Bears doubled down on their efforts over the night and dragged prices lower by an additional $1.5k.
Naturally, a crash in Bitcoin automatically leads to a crash in the entire market, which occurred over the past session. That said, many altcoins recorded double-digit losses.
Yesterday’s crash caused the cryptocurrency market capitalization to shed over $200 billion in a few hours.
As expected, leveraged traders suffered the most hit with the recent developments. Bybit revealed that over $1 billion worth of positions got liquidated over the past 24 hours. Not surprisingly, 90% of all liquidations were long positions.
Bybit also noted that one of the most significant liquidations occurred on an Ethereum position. This drop saw a single position lose $7 million.
Key Bitcoin Levels to Watch — June 8
With the ever-increasing level of uncertainty in the market, many traders are staying on the sidelines giving bears free reign of the market. That said, the market has entered oversold territories, indicating that we could see a rebound soon.
The immediate target for bulls is the $35k resistance, followed by the $37k level. Failure to clear these levels could cause another sideways momentum, which could trigger another leg-down to the $30k region.
Meanwhile, our resistance levels are at $33,750, $34,200, and $35,000, and our key support levels are at $32,000, $31,000, and $30,000.
Total Market Capitalization: $1.51 trillion
Bitcoin Market Capitalization: $615 billion
Bitcoin Dominance: 40.8%
Market Rank: #1
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