- Around $2.3 billion worth of orders were liquidated on BTC, ETH, and LTC.
- Just Binance alone saw $190 million in liquidations in under 10 minutes.
The entire cryptocurrency market suffered somewhat of a flash crash in the past 24 hours losing around $110 billion in market capitalization. Bitcoin price dropped from a high of $33,600 down to $28,130 but has managed to recover. The entire market recovered quickly and the current market cap sits at $860 billion.
$190,000,000 (in long positions) were liquidated on #Binance within 10 minutes.
— glassnode (@glassnode) January 4, 2021
Largest value to date.#Bitcoin
Chart: https://t.co/qr7Ti38az9 pic.twitter.com/lHsGAE4nqs
During the flash crash, around $190 million in long positions were liquidated on Binance and close to $2.3 billion in total across all exchanges. According to Bybit, more than 150,000 traders were liquidated during this time frame. Although things were looking dull at first, the market has managed to recover significantly. Many analysts believe that Bitcoin should pull back even harder to maintain a healthy uptrend.
Will the next dip be worse or better?
The last dip was massive, but nothing out of the ordinary as we have seen steeper dips in 2017 for Bitcoin. The fact that Bitcoin and others managed to quickly recover shows that investors are still aiming for higher highs.
BTC/USD daily chart
With this in mind, it’s totally possible that the next dip will be bought even faster as now everyone expects that. Bitcoin bulls defended the 12-EMA support level which is critical and always an accurate indicator on the daily chart.
As long as Bitcoin price stays above the 12-EMA and the 26-EMA which is the strongest support level, the uptrend will remain intact. Only a dip below the 26-EMA would be concerning and a significant shift in momentum.
Ethereum price came late to the party but has finally cracked $1,000 and peaked at $1,162 before plummeting. The current price is $1,030 as the bulls hope to continue with the uptrend.
ETH/USD 6-hour and 9-hour charts
However, the TD Sequential indicator has presented a sell signal on the 6-hour chart and it’s on the verge of doing the same on the 9-hour chart. If both calls are confirmed, we could see Ethereum price dip towards the psychological level at $900 again.
Litecoin has been one of the few altcoins that performed even better than Bitcoin in the past month, rising by more than 150% hitting $173 which is still far away from its all-time high at $360.
LTC sell signals
The In/Out of the Money Around Price (IOMAP) chart shows practically no resistance ahead well until $180 which means bulls can continue pushing Litecoin price freely.
LTC IOMAP chart
However, similar to Ethereum, the TD Sequential indicator has presented two sell signals on the 6-hour chart and the 9-hour chart which seem to be getting a lot of continuation. A breakdown below the crucial support area between $148 and $152 will push LTC down to $135.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.