Crypto Market Decline: Traders Lose $277 Million As Bitcoin Falls Below $70K

This Is Why Bitcoin Keeps Dropping In Value

The cryptocurrency market experiences a significant downturn as traders reduce their long positions following recent price surges. Bitcoin, unable to sustain its peak of $73,700, drops 4% in a single day.

Current market trends indicate that Bitcoin may test a key support level near $66,000 if it closes below $69,700 during Asia’s trading hours.

Over the past 24 hours, 90,456 traders face liquidation, leading to losses totaling approximately $276.84 million. The largest liquidation order occurs at Binance, valued at $11.3 million in BTC/USDT.

Understanding Liquidation
Liquidation in cryptocurrency refers to the mandatory closure of a trader’s market positions when their margin account cannot support these positions due to significant losses or inadequate margin. When a trader’s account balance falls below the required threshold, the exchange initiates liquidation to cover losses.

Current Bitcoin Trends
Despite recent losses, Bitcoin saw gains in October, rising about 14% in the past month. However, bullish momentum shows signs of weakening, as indicated by the Relative Strength Index (RSI), which peaked at an overbought level before dropping to 57. In the past 30 days, retail Bitcoin holdings have increased by only 1,000 BTC, bringing the total to 1.753 million, slightly below the record high of 1.765 million at the end of 2023.

Ethereum’s Price Action
Ethereum approaches a critical support level of around $2,500, having fallen over 5%. This level aligns closely with the 50% retracement at $2,485 and other technical indicators, including daily support at $2,420.

Impact on Cryptocurrency Stocks
Stocks related to the cryptocurrency industry also suffer losses. Shares of cryptocurrency exchange Coinbase (COIN) and trading platform Robinhood (HOOD) decline by 7% and 15%, respectively, following disappointing earnings reports. Bitcoin mining companies, including Cleanspark (CLSK), Riot Platforms (RIOT), and MARA Digital (MARA), see their stock prices fall between 5% and 10%.