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HomeCrypto NewsMarketBitcoin, Ethereum, Shib Slide as Crypto Market Takes Hit

Bitcoin, Ethereum, Shib Slide as Crypto Market Takes Hit

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Crypto market falling, hurting investors.



The cryptocurrency market is declining today, with several top cryptocurrencies seeing significant drops in price.

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Bitcoin broke below $41k just minutes ago and trades at just over $40,700. This is followed by many other top cryptocurrencies, as Bitcoin usually determines the crypto market trend.

Bitcoin is acceptable now, Bitcoin is fine, but things get interesting if we see a move into the 37-39K support zone. Fear is setting in as we approach 40K! The real danger is dropping below 37K and setting a lower low where the market will indeed be in fear.

Interestingly, $35-37K will be short-lived because Billions of dollars await good entry points into BTC, and as money flows in, there are chances BTC will hold support and bounce.

As usual, the selling over the weekend led to spikes in liquidations of leveraged bitcoin derivatives traders on exchanges. According to data from Coinglass, more than $113M of bitcoin long positions were liquidated during 24-hour periods.

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The second-largest cryptocurrency, Ethereum, is also down 7.18%, bringing the price down to just over $3,000. As it stands, the asset risks going as low as $2,400 if it breaks below the sensitive balance at $3,027.87, a close at which point will make traders close their longs. 

Ethereum has reached the most crucial demand wall underneath it. According to IntoTheBlock data, roughly 1.20 million addresses hold 8.79 million ETH between $2,937 and $3,027. A decisive close below this support level could encourage traders to exit their long positions, pushing ETH to $2,400.

Notably, top Dogecoin (DOGE) and meme coins Shiba Inu (SHIB) are among those that have taken the most hits. Dogecoin is down 8.3% at the time of writing this report vehicle SHIB is down 6.98% in the last 24 hours. 

What could be responsible for this trend, and how long will it last? 

Bitcoin mid-halving event: Today, 11 April 2022, marks the Bitcoin mid-halving event. This is a day that historically leads to a significant drop in Bitcoin’s price. Though it seemed earlier that this year’s event might be different due to the rally in the market last week, it turns out that Bitcoin was unable to break and stay above the $50k resistance, which has led to a break to lower levels.

As is usually the case, the rest of the market follows in the same direction as Bitcoin continues to correct lower. If history should play out again, this may result in a sustained correction that may last a while before a reversal is seen. You can read more about the mid-halving event here.

DeFi tokens lead the way.

Bitcoin initiated this market-wide correction, and most cryptocurrencies are affected. However, DeFi tokens seem to be most affected. Top such tokens like Cardano and Avalanche dropped more than 10% each. This is higher than the losses recorded by most of the top ten cryptocurrencies when reporting this.

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Mark Brennan
Mark Brennanhttps://thecryptobasic.com/
Mark Brennan has been active in the cryptocurrency sector since 2014. His love and passion for the nascent industry drove him to develop interest in writing about important developments and updates about cryptocurrencies and blockchain. Brennan, who holds a Masters degree in Business Administration, learned about the potential of blockchain technology. Aside from crypto journalism, Brennan runs an education center, where he educates people about the asset class.

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