- The crypto market experienced a significant selloff, causing widespread panic among investors.
- Over $180 million were liquidated within 24 hours, with the majority of the selling occurring in the last four hours.
- Prominent analysts, including John Bollinger and Ali Martinez, predict a potential pullback in Bitcoin’s price.
Discover the reasons behind the recent crypto market selloff and what experts are predicting for Bitcoin and altcoins.
Bitcoin, Ethereum, and Meme Coin Prices Fell
The crypto market saw a broader selloff following the release of UK inflation data. The annual inflation rate in the UK eased to 2.3% from 3.2% last month but exceeded the forecast of 2.1%. Despite the inflation missing market expectations, the Pound Sterling strengthened as UK inflation neared the Bank of England’s 2% target. Consequently, the US dollar index (DXY) was volatile but fell after the UK inflation data. However, the US 10-Year Treasury yield (US10Y) saw an unusual increase of 0.027% to 4.457%, causing Bitcoin to remain volatile despite low trading volumes.
Impact on Altcoins
Ethereum’s price tumbled 3% in the last 24 hours despite positive progress on spot Ether ETF. Other top altcoins, including Solana, XRP, Dogecoin, Cardano, and Shiba Inu, fell 2-3% within an hour. Today’s leaders, such as PEPE, BOOK OF MEME, GALA, and WIF, also dropped 3-6%. The broader market selloff was triggered by macroeconomic factors and profit booking in altcoins.
Analysts Reveal Sell Signals
John Bollinger, the inventor of Bollinger Bands, predicts a consolidation or a pullback in Bitcoin due to a two-bar reversal at the upper Bollinger Band. He is not bearish but expresses short-term concerns. Similarly, popular analyst Ali Martinez revealed that the TD Sequential indicator is now showing a sell signal on the Bitcoin daily chart, recommending traders to exercise caution.
Market Liquidations
Coinglass data revealed that the crypto market saw $40 million in liquidations in the last few hours, with a total of $180 million liquidated over 24 hours. Notably, $125 million longs and $55 million shorts were liquidated, with Ethereum, Bitcoin, Pepe Coin, Solana, and Dogecoin leading the liquidation figures. Over 64,000 traders were liquidated, with the largest single liquidation order occurring on crypto exchange BitMEX, valued at $4.26 million.
Conclusion
The recent selloff in the crypto market highlights the volatility and sensitivity of digital assets to macroeconomic factors. While analysts predict a potential pullback in Bitcoin and altcoins, the market remains uncertain. Investors are advised to stay informed and exercise caution in their trading decisions.
