Why are Bitcoin, Ethereum and Solana Price Crashing Today?

The crypto market is dropping today as a weak sentiment push risk assets lower. Bitcoin (BTC) was trading at $74,872 at the time of writing, while Ethereum (ETH) and Solana (SOL) prices had dropped to $2,120 and $86, respectively, at the time of writing.

Four reasons ranging from weakening demand from institutions, turmoil in the futures market, a weak sentiment and inflation concerns could be fuelling this downtrend.

Crypto ETF Outflows are Pushing BTC, ETH and SOL Prices Lower

The crypto market today is crashing because of rising outflows from ETFs. Data from SoSoValue shows that Bitcoin ETFs have now registered two straight weeks of outflows. As CoinGape reported, BTC ETFs also recently saw their highest weekly outflows since June.

The same setup can be seen with Ethereum and Solana ETFs, which saw outflows of $365 million and $26 million last week. Solana ETFs have now seen five straight weeks of outflows while Ethereum ETF have seen six straight weeks of outflows.

Outflows from these products have a bearish effect on price because of two reasons. The first is that they dampen the sentiment of retail traders who also begin to sell, which pushes Bitcoin, Ethereum and Solana prices lower.

Secondly, when the ETF holders begin to sell, the issuer is forced to liquidate some of their crypto holdings to settle the transactions. This creates selling pressure that pushes the prices down.

Ongoing Long Liquidations Are Increasing Selling Pressure

Data from CoinGlass shows that $781 million worth of longs were liquidated from the crypto market on November 8. Another $292 million had also been liquidated at press time today, November 9.

Bitcoin has registered a total of $284 million in long liquidations in just two days. Ethereum and Solana have also seen $461 million and $40.32 in long liquidations, respectively.

During these two days, long liquidations have accounted for over 80% of the total liquidations.

When a long trader is forced to close their position, they have to sell. This creates additional selling pressure that triggers a bearish future Bitcoin outlook. The long liquidations are also pushing Ethereum and Solana price down.

Weak Crypto Market Sentiment is Pushing BTC, ETH and SOL Prices Lower

The Fear and Greed index for the crypto market has dropped to 29, suggesting that the sentiment of traders is now “fear.” Barely three weeks ago on October 22, this index was at 68, with trader sentiment in “greed.”

A fearful sentiment means that traders are cautious about buying out of fear that crypto prices will drop lower. It is because of this buyer hesitation that BTC, ETH and SOL are dropping today.

Ongoing Deleveraging Ahead of US Inflation Data

Bitcoin, Ethereum and Solana prices are also dropping today because of an ongoing deleveraging where traders are exiting their positions and sitting on the sidelines.

Per CoinGlass, the total open interest across the crypto market has dropped to $126.82 billion, with this being the lowest OI reading seen since late August.

The declining open interest comes ahead of the release of the US CPI and PPI data on November 10 and November 13, respectively. More than five Fed officials will also be speaking at various events this week.

Bitcoin, Ethereum and Solana prices could be falling because futures traders are choosing to wind down their positions to avoid the volatility that usually comes with these events.

Key Levels to Watch in Bitcoin, Ethereum and Solana Price

Bitcoin price has dropped below the psychological support of $75,000. If the selling pressure worsens, the next support to watch is the 200-week EMA. Dropping below that EMA will trigger an even bigger downtrend.

On the upside, the resistance is at the 100-week EMA of $78,700. If Bitcoin closes above this resistance the king coin could move towards $80,000, but this may not occur in the near term because the RSI shows the momentum remains bearish.

The future Ethereum price outlook is also leaning bearish because the Chaikin Money Flow (CMF) has dropped to -0.01. This drop to the negative side now shows that selling pressure is outpacing the buying pressure.

The support for Ethereum price lies at $2,060. If it loses this support, it might move below the psychological level of $2,000 to the 123.6%B Fib of $1,800.

Solana price has dropped to its lowest level since August of $85. The support to watch lies at the psychological level of $80. If it drops below this level, Solana may retest $77.

The ADX line that is tipping north adds to the bearish concerns. It shows that the downtrend is gaining strength.

However, if sellers reach exhaustion and buyers decide to come back, Solana price may rebound towards $95