Bitcoin Price Drops Below $39k as Total Liquidation Reaches $320 Million in 24hrs

Bitcoin (BTC) is facing another wave of volatility falling below the $39,000 mark on Tuesday, a 4.33% slump in the past 24 hours. The largest crypto by market cap is currently trading at $38,955 at press time.

According to data from Coinglass, 124,153 traders were liquidated in the past 24 hours, resulting in the total liquidations reaching $326.47 million. “The largest single liquidation order happened on Bybit – BTCUSDH24 value $5.00M,” the data revealed.

Bitcoin price has dropped slightly over 9% in the weekly charts and has dropped 10.72% in the past month, per CoinMarketCap data. The plunge follows its sudden spike hitting a two-year high of over $49,000 as 11 Bitcoin exchange-traded funds (ETFs) started trading on Jan 11, following the SEC’s approval.

#BTC has actually gone down in price since spot bitcoin ETFs hit the US market. https://t.co/EE2w85bxju You won't believe the 21 million reasons bitcoin ETFs are dumb as heck and super-risky! Oh wait, of course you will

— Amy Castor (@ahcastor) January 21, 2024

Bitcoin has been under pressure since Monday following the recent sell-offs over the last weekend. The decline comes in line with previous predictions from Chris J Terry, founding partner of BTC data Corporation. He recently expressed his concerns about the impact of GBTC’s massive sell-off on the cryptocurrency’s price.

With BTC price below $39k, it is less likely that the crypto will recover the bearish signal in the immediate future. However, experts believe that this trend might change, given the nearing of BTC’s next halving cycle in April.

Elsewhere, Ethereum also experienced downward trend, witnessing a 6% drop, reaching $2,230. The slump could be due to ETH’s substantial selling pressure from its Foundation. Further, Ethereum experienced the largest outflows, amounting to $13.6 million.

Altcoins and stablecoins were also seen in red, with Solana (SOL) down 8%, Avalanche (AVAX) down almost 10%, DAI and TRON falling less than 1% in the past 24 hours.

Bearish Sentiment Likely

With the prominent crypto losing its hold, crypto analysts have expressed their concerns, warning about a further decline in prices.

One Bitfinex analyst told Cryptonews that a considerable price correction even further down from current levels across the market “would not be surprising.”

“As bearish sentiment appears to be prevailing, the next crucial price levels for BTC that could provide support are estimated to be between $38,000 (close to the short-term holder realised price for BTC at $38,307) and $36,000.”

The analyst further said that many investors who acquired BTC less than a month ago, are now exiting the market at a loss. “Typically, such a substantial decrease in average profits for short-term holders, who tend to react more acutely to short-term market fluctuations, can be a precursor to selling pressure or exit liquidity” the analyst added.

Another Belgium-based crypto analyst Nestay posted on X (formerly Twitter) that the “drop is not over yet.”

$BTC is down 20% since the golden rejection so far and history tells us that the drop is not over yet. https://t.co/Vx6l4idosB pic.twitter.com/RN9Xw591mH

— nestay (@nestayxbt) January 22, 2024