In a worrying downturn, Bitcoin (BTC), the world’s largest cryptocurrency by market cap, has been caught in a whirlwind of instability. From trading comfortably above $28.2K, BTC nosedived below the $27k threshold. At the time of writing, the digital currency stands at $27,519.20, a drop of more than 7% over the previous week.
This drastic fall has sent shockwaves through the global digital asset market, turning most indexes red. The previous relief rally, sparked by encouraging Consumer Price Index (CPI) data, now appears to be a distant memory. The overall digital asset market’s worth currently hovers around $1.13 trillion, with a trading volume of $46.68 billion over the past 24 hours.
Predictions of a Bitcoin Collapse
Veteran trader Peter Brandt had voiced concerns over Bitcoin’s trajectory, pointing to a disturbing “head and shoulders” pattern on the price chart. This pattern often signals a potential market downturn. This prediction, coupled with the current market volatility, has left many in the crypto community on edge.
Bitcoin’s Rocky Recovery
Despite the doom and gloom, Bitcoin has made a slight recovery. Its average trading price currently sits at $27,414, a slight climb from its 7-day low of $26,992. The trading volume also saw a significant upsurge, increasing by a whopping 57% within the past day.
Spike in Trader Liquidations
This tumultuous market has had dire consequences for traders. A staggering 50,000 traders have been liquidated in the past 24 hours, causing total liquidations to exceed the $190 million mark. The lion’s share of these liquidations stems from long positions, which account for $56.54 million of the total, highlighting the severity of Bitcoin’s recent price swings.
In this climate of uncertainty, Bitcoin’s future trajectory is difficult to predict. The recent market volatility underscores the need for traders to tread with caution. Time will tell if the digital currency can navigate this tumultuous dip and regain its stability.