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In the past 24 hours, there has been a significant liquidation of Bitcoin, leading to a massive sell-off that caused the price to fall below $50,000 and the critical $60,000 mark. Many traders and investors have lost faith in Bitcoin due to this dramatic decline, resulting in an astounding $10,000 drop in value.

A massive $1 billion liquidation in the cryptocurrency market was the main cause of this sell-off, creating a cascading effect that significantly lowered Bitcoin prices. The graph highlights strong selling pressure that overpowered the market, characterized by a notable volume spike. Bitcoin is now in a risky situation, testing the 100 EMA support level due to the abrupt price drop.

Despite this, prominent traders on Binance have shown tenacity, with almost 70% of them taking long positions on Bitcoin, betting on a future surge. However, the sharp decline and significant liquidation activity suggest overall market sentiment remains pessimistic.

This situation emphasizes the ongoing conflict between conventional value stores like gold and Bitcoin. The general state of the market has also contributed to Bitcoin’s downfall. Markets are in panic following Warren Buffett’s decision to sell stocks, including Apple (NASDAQ:AAPL), and hold $277 billion in cash. This has contributed to a perfect storm for Bitcoin, compounded by the NASDAQ’s nearly 6.5% decline and the biggest drop in Japanese stocks in over eight years.

Ethereum in Freefall

Ethereum is also experiencing a sharp decline, mirroring Bitcoin while presenting its own set of challenges. The price of ETH has plummeted, breaching important support levels, causing great concern among investors. Currently trading at about $2,356, following significant declines mainly driven by institutional selling pressure.

Ethereum has not been immune to the recent market-wide liquidation exceeding $1 billion. The large-scale sell-off has increased downward momentum by triggering a chain reaction of sell orders. The 200 EMA is a critical focus for ETH, testing significant support levels akin to Bitcoin. If this level is broken, additional drops could follow, leading to even greater losses.

Institutional selling of ETH has exacerbated market declines. Large holders appear to be actively selling, as evidenced by substantial outflows from exchanges shown by liquidation heatmaps and on-chain data. This institutional sell-off, along with the overarching market state, has played a significant role in Ethereum’s current downturn.

A ripple effect has been observed throughout the cryptocurrency market due to the panic instigated by Warren Buffett’s hefty cash holdings and stock sell-offs, alongside NASDAQ’s 6.5% decline and Japan’s significant stock drop.

Shiba Inu Declines

Shiba Inu has seen a sharp decline, falling from approximately $0.00002 to $0.000012. This sudden decrease in value has raised concerns among investors, indicating potential problems for the cryptocurrency.

SHIB’s chances of recovery are now in question due to the significant sell-off that has driven it to these lows. With SHIB breaking below important support levels, the chart shows a clear downtrend. The price’s 65% decline since its peak earlier this year marks significant difficulties. The proximity of the memecoin price to the crucial support zone of $0.00001 adds to the pressure.

A drop below this threshold may lead to further losses, potentially adding another zero to its value, signaling bearish trends for investors. On-chain metrics also paint a bleak picture, with approximately 1.5 trillion transacted in the last 24 hours among whales, not exceeding standard volume among large wallets, indicating a lack of buying or selling power.

This article was originally published on U.Today