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Over $500M in Cryptocurrency Liquidations in 24 Hours: The End of the Bull Market?

Wed 20 Mar 2024 ▪ 3 min of reading ▪ by Luc Jose A.
Getting informed Trading

Is this already the end of the crypto bull market observed these past few days? The question deserves consideration in light of the trend for asset liquidation that is now being observed among many investors. A dynamic that is linked to the increased volatility of the market.

Crypto investors sell their assets en masse

Record and Concerning Surge in Crypto Sales

The recent turbulence on the crypto market seems to exceed expectations. Indeed, we are witnessing massive asset sales that are raising concerns about the end of the bullish trend.

According to the latest data, more than 500 million dollars of positions have been recently liquidated. A figure that represents 107.14 million dollars, solely for Bitcoin, the queen of cryptos. This, in a span of 24 hours.

In light of these figures, an obvious conclusion seems to jump out. Namely, that a significant liquidation is underway. The total volume of liquidations exceeding half a billion dollars easily.

This seems to have a direct link with the dynamics around the flagship crypto. Chart data reveal that Bitcoin has fallen below the short-term moving averages, considered as support levels. This suggests a weakening of the bullish momentum for the crypto.

More than 500 million dollars in cryptos were liquidated in 24h

In the Context of a Sustained Collapse of Bitcoin

If, as we noted at the beginning, these figures concerning sales are worrying, it’s because, against all odds, Bitcoin is collapsing at a dizzying speed. In the last 24 hours, the crypto has lost about 6% of its value to settle around 64,200 dollars.

Now, Bitcoin is approaching its 50-day moving average, which is around 56,276 dollars. If this level does not hold, the next major support would be near the 100-day moving average, at approximately 51,819 dollars.

This could intensify selling pressure, especially as a break below this level would send a signal of a bearish phase potentially set to continue. This situation is all the more worrying as the market was expected to stabilize at 70,000 dollars.

While obviously, the current correction, which could continue, has taken many by surprise, it nonetheless makes sense. It signals a change in investors’ perception of crypto, who seem to shift from optimism to caution, or even outright pessimism.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.