Altcoins Crash Trigger $1.76 Billion in Crypto Liquidations, What’s Next?

Following the Bitcoin price drop under $95,000 earlier today, altcoins like Ethereum (ETH), Solana (SOL), XRP, and Dogecoin (DOGE) have corrected anywhere between 6-12% each leading to crypto liquidations surging above $1.76 billion. With Bitcoin encountering repeated rejections at the $100K level, investors are left wondering if the altcoin rally is coming to an end.

Altcoins See Heavy Dumping in Broader Market Sell-off

Since September, this has been the fastest flush-out in altcoins as traders re-align their positions in order to identify any buy-the-dip opportunities. Today’s Bitcoin price drop under $95,000 has led to greater liquidations in the overall crypto market.

Blockchain analytics platform Santiment observed that cryptocurrencies that experienced substantial gains during the bull run of the last two months, faced severe drops in the last 24 hours.

However, it added that if retail traders succumb to fear and begin offloading their holdings, the market could witness a swift rebound as buying opportunities emerge. On the other hand, crypto analyst IncomeSharks noted that the alt sector managed to maintain the super trend, with professional traders buying the dips.

IncomeSharks has expressed optimism about the recent downturn in altcoin prices, describing it as a potentially bullish development for the market. “This is the most bullish thing to happen to altcoins,” noted the analyst. It also led to strong crypto liquidations, now nearing $2 billion.

The analyst noted that the correction has allowed the market to flush out new buyers while maintaining Supertrend support levels, which is a bullish indicator.

As per another crypto analyst Rekt Capital, the overall altcoin market has faced rejection from a historically significant resistance level. However, the analyst suggested that the pullback may be less severe this time, indicating a weakening of the $425 billion resistance mark. This trend could signal growing momentum for a potential breakthrough in the near future

Crypto Liquidations Soar to $1.76 Billion

As per the Coinglass data, the crypto liquidations have soared to $1.76 billion in the last 24 hours with $1.58 billion in long liquidations and $185 million in short liquidations.

In a dramatic turn of events, the cryptocurrency market saw significant turbulence over the past 24 hours, with 583,647 traders liquidated across exchanges. The largest single liquidation order occurred on Binance in the ETH/USDT pair, amounting to $19.69 million. Commenting on the development, popular crypto analyst Michael van de Poppe stated:

“That’s the flash crash drop on altcoins. Some have dropped by 30% on the day. Don’t worry, this will reverse back fast, you’d want to see such a massive collapse and liquidity wipe. Onwards we go”.

Following today’s crash, Bitcoin’s dominance has inched a notch higher. Crypto analyst Benjamin Cowen highlighted a significant milestone in Bitcoin dominance, noting that it recently touched the prior wedge level when excluding stablecoins. Cowen remarked that as long as Bitcoin dominance remains below this level, altcoin-to-Bitcoin (ALT/BTC) trading pairs are structurally stable.

At press time, the BTC price is trading 2.6% down at $96,905 with a market cap of $1.917 trillion. The 24-hour Bitcoin liquidations have surged to $189 million with $149 million in long liquidations.

On the other hand, the Ethereum price is down 6.62% to the $3,684 level as per the indications on the technical chart. Crypto market analysts believe that these dips are still for buying as ETH could reverse the trajectory again.