Bitcoin prices have crashed again with a huge four-thousand-dollar dump from just over $62,000 to bottom out at $58,000 during late trading on Tuesday, Aug. 27.
According to Coinglass, 87,920 traders have been wrecked, with the total liquidations coming in at $320 million over the past 24 hours.
BTC has since recovered marginally to trade at $59,600 at the time of writing, but crypto markets are deep in the red again as the asset fell back to support last hit on Aug. 19.
Total #crypto market cap is down 7% to $2.17T today, as #Bitcoin fell below the $60K level 🔴 pic.twitter.com/AHifMHOvA0
— CoinGecko (@coingecko) August 28, 2024
Months of More Chopsolidation?
ITC Crypto founder Benjamin Cowen observed that BTC has had another rejection of its bull market support band.
“If it follows the last cycle, the earliest this trend could durably change is *after* rate cuts,” he added.
In a blog post on Aug. 27, on-chain analyst James Check compared the current market structure to that from 2019.
“The similarities between the 2024 chopsolidation, and the one we experienced back in 2019 are strange and uncanny.”
There was a three-month pump from $4,000 to $13,000 from April to June in 2019, followed by 16 months of sideways trading.
The three-month pump in 2024 saw BTC rise from $40,000 to $74,000 between January and March. A similar follow-up period could see this ‘chopsolidation’ continue until mid-2025.
Meanwhile, the ETF experts were perplexed about the panic selling.
“Bitcoin fearmongers might be worse than stock market fearmongers,” commented ETF Store president Nate Geraci, who also pointed out that BTC is up 40% year to date and outperforming the S&P 500 by over 20%.
Bloomberg ETF analyst Eric Balchunas was equally baffled:
“Ok Einstein, If ETFs bought $18 billion of Bitcoin (almost as much as Satoshi), who in the hell is dumping?”
Altcoins Bleeding Again
Ethereum has been smashed more than 10% in a plunge from $2,700 to $2,400 within a day before recovering a little to $2,472 during the Wednesday morning Asian trading session.
The rest of the altcoins were bleeding as usual, with larger losses for Solana (SOL), Avalanche (AVAX), Near Protocol (NEAR), and Uniswap (UNI), among others.
Nevertheless, crypto trader Luke Martin saw it as a buying opportunity, saying altcoins are currently at the “sell your house to buy more” level before adding:
“Last time BTC was at this level was exactly 4 years ago in the summer of 2020 when the price went vertical from $10k to $60k over the next 6 months.”
Altcoins currently at the “sell your house to buy more” level.
Last time $BTC was at this level was exactly 4 years ago in the summer of 2020 when price went vertical from 10k to 60k over the next 6 months.
h/t @CryptoKoryo pic.twitter.com/vwaGkGE1FA
— Luke Martin (@VentureCoinist) August 27, 2024
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER 2024 at BYDFi Exchange: Up to $2,888 welcome reward, use this link to register and open a 100 USDT-M position for free!
