Bitcoin Falls Below Key Support, Crypto Market Slides as Stocks Get Hammered

 

The crypto market continued lower over the past 24 hours following a selloff led by technology stocks in the US on Thursday. The falling prices were accompanied by liquidations across the crypto market, with one analyst saying the leverage flush-out could potentially set the market up for a “relief rally.”

At 13:50 UTC, bitcoin(BTC) traded at USD 38,593, down by almost 9% over the past 24 hours and for the week. The current price means that the number one cryptocurrency now has broken below a key psychological support level at USD 40,000, while also falling below a recent low from January 10 of USD 39,650.

BTC price last 14 days:

The crypto market continued lower over the past 24 hours following a selloff led by technology stocks in the US on Thursday. The falling prices were accompanied by liquidations across the crypto market, with one analyst saying the leverage flush-out could potentially set the market up for a “relief rally.”

At 13:50 UTC, bitcoin(BTC) traded at USD 38,593, down by almost 9% over the past 24 hours and for the week. The current price means that the number one cryptocurrency now has broken below a key psychological support level at USD 40,000, while also falling below a recent low from January 10 of USD 39,650.

BTC price last 14 days:

Source: CoinGecko

Meanwhile, ethereum(ETH) traded at USD 2,811, down almost 12% for the past 24 hours and 14% for the past 7 days. The second-most valuable crypto thus saw even heavier selling than bitcoin, as traders exited high-risk positions with higher perceived risk.

Source: CoinGecko

“Bitcoin’s continued selloff is driving speculators out the market. However, with leverage quick to build up around this asset, the market could be setting itself up for a short squeeze and relief rally,” an official was found saying.

He added that the selloff is likely “not too concerning” for long-term holders, although it could turn away some newcomers to the space. In particular, this is the case for “those who are trading meme coins and other hype-based tokens,” the analyst said.

In the 12 hours between midnight and 12:00 UTC today, nearly USD 388m of long positions were liquidated across the crypto futures market, with USD 182m of those coming from bitcoin alone, data from Coinglass showed.