Crypto Prices Dump: BTC -6%, ETH -8.5%, SOL -6.5% – What’s Going On?
Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology...
Crypto prices have dumped hard in the last few hours since the close to US marts on Tuesday, with Bitcoin (BTC) dipping 6%, Ethereum (ETH) 9% and Solana (SOL) 7% in the last 24 hours as per CoinMarketCap.
The sudden sell-off commenced at just after 5pm Eastern time.
Over the course of about one hour, Bitcoin had slumped all the way from just under $62,000 to lows around $58,000.
BTC has since recovered back to the $59,000s.
ETH, meanwhile, dipped from the upper $2,500s to the mid-$2,400s. And SOL dove from above $154 to its current level near $147.
Per CoinGlass, levered futures positions worth $205 million were liquidated in the past 4 hours.
That meant liquidations were over $300 million in the past 24 hours, the most since August 4th.
There was no obvious catalyst for the sudden drop in crypto prices.
But technicals could have played a part, at least for Bitcoin.
Bitcoin’s sudden drop occurred after the crypto’s price dipped below its 50DMA.
The 50DMA has been a key level of resistance throughout most of August.
It was then flipped to support during last Friday’s rally in crypto prices that saw BTC reach as high as $65,000.
But that support has now gone, as has an uptrend from the mid-month lows.
Chart analysis suggests a near-term test of $56,000 is a possibility.
Tuesday’s sharp drop in crypto prices could prove very short-lived if Wednesday’s Nvidia earnings report beats expectations.
If you pay attention to any report this week, it should be Nvidia (NVDA)’s earnings update tomorrow.
As a major supplier of tech that fuels AI, NVDA
