The crypto bloodbath has wiped out nearly $100 billion from the crypto markets in a single day. The global crypto market cap is below $1 trillion for the first time since January 2021. The crypto winter is deepening and the final capitulation is in full swing as the total market capitalization tank is at its lowest level for 18 months
The top two cryptos – Bitcoin and Ethereum – are suffering double-digit losses, while altcoins have fallen over 50%. While there is always an exception in the crypto space, while major altcoins are in deep red seas, Polkadot and Avalanche are seeing a mild recovery after hitting a solid hammer.
Speaking of bitcoin, according to data from CoinShares, over the past 24 hours, $600 million in bitcoins were liquidated with $1.24 billion in total liquidations. This drove the King coin below $21K.
Will bitcoin price break below $20K?
Bitcoin price is down more than 20% over the past 7 days, forming a multi-week low near $20816.35. Since then, bitcoin has bounced back above $23000 and continues to trade within its close range.
Currently, the major currency is trading at $22,426.62 with slight signs of correction. According to the 1-hour chart, the BTC/USDT pair is near the 23.6 percent Fibonacci retracement level of the recent decline from $28,300 high to $20,824 low.
If the bulls sustain and stay above this trendline, the major currency could hit $23,000 in the coming hours. On the upside, a major resistance is now forming at the $23,200 level. However, BTC/USDT should move higher above $25K for the trend reversal to be confirmed.
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On the other hand, if BTC/USDT fails to hold above $22k, it could test an immediate support near the $21,000 level. The next major support is near the $20,000 mark.
Besides, a break below the $20,000 support might take the price towards the $18,500 support area in the near term.
Overall, BTCUSD price has moved closer to key support levels since 2017 and 2019. If there is a downside break from these levels, it would be a very bearish development. With this momentum, there remains a possibility for the price to drop back towards $20k and retest the 2017 highs.