Key Takeaways
- The US stock market sees over $1.3 trillion liquidated as the crypto market and BTC come crashing hard.
- Altcoins suffer a fresh new setback with over 4% decline as the market trades into a key demand zone with a rebound expected.
- Bitcoin’s price must defend its key zone of $116,500 for a chance of “Uptober” based on technical analysis.
Over $1.3 trillion has been wiped out in the Stock market as crypto traders pray for BTC and altcoins. The news of this liquidation had a spiraling effect on the crypto market. The price of Bitcoin fell from a high of $122,000 to a low of $116,500, affecting the total market capitalization, which is now trading around $3.9 trillion, down from a high of $4.2 trillion a few days ago.
October hasn’t turned out as anticipated for BTC and altcoins, despite high expectations for a potential 20% price gain in the crypto market. Following a 5% rally, the crypto market has been in a market downtrend for days as Bitcoin and altcoins struggle to protect key zones from further price decline.
What could have triggered recent market liquidations in the crypto and US stock markets? Where could the price of Bitcoin be headed, as whales and investors might be looking to buy around these zones?
Crypto Market Crash Triggered by Liquidations
Source – BTC and Crypto Market Crash Heatmap from QuantifyCrypto
In the last few hours, the crypto market has witnessed significant liquidation for long traders as the price of Bitcoin crashed from its high of $122,000 to around $116,500, wiping out over $200,000,000 in the first 15 minutes of the price drop.
Crypto heatmap data from Quantify Crypto describes the current state of the crypto market, with prices favoring bears in the last few hours as the market crashed by over 4%.
The price of BTC needs to rebound from its current price zone, which acts as a key area for upward movement. If the price continues its downtrend, there is a possibility of a further market crash towards a low of $100,000.
While this price decline could be extreme, many traders and experts have suggested it is not impossible, as the price could potentially trade into these lows if bulls allow bears to take more control over the market.
With bears aiming to push prices down, the US stock market experienced over $1.3 trillion in liquidation, potentially affecting the crypto market unless whales and institutions step in to drive prices up.
With the price of BTC closing the week bearish, traders and investors will focus on how the price will respond in the coming weeks, considering October is still early, with speculation remaining bullish for the price to reach $130k and above.
FAQs
How is the crypto market today?
The crypto market and BTC experienced a market crash following the US stock market, with over $1.3 trillion wiped out.
Which crypto to trade today?
The market is currently crashing to lower price points, so it would be good to observe it before making an investment decision.
Why has crypto dropped now?
The cryptocurrency market crashed due to microeconomic factors, as the US stock market has been in a bloodbath today.
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