Bitcoin Sinks Below $57K, Ethereum, Dogecoin Tumble As Crypto Liquidations Surge: Veteran Analyst Spots King Crypto’s Reversal Pattern From Bullish To Bearish
By Benzinga
Leading cryptocurrencies plummeted Tuesday overnight, triggering large liquidations of bullish bets.
| Cryptocurrency | Gains +/- | Price (Recorded at 9:00 p.m. EDT) |
| Bitcoin (CRYPTO: BTC) | -4.84% | $56,419.43 |
| Ethereum (CRYPTO: ETH) |
-7.12% | $2,353.52 |
| Dogecoin (CRYPTO: DOGE) | -6.19% | $0.094 |
What Happened: Bitcoin tanked from $57,790 to $55,676 in a matter of 15 minutes late evening, before clawing back to $56,400.
The steep descent rippled across the market, with Ethereum too plunging to the early $2,300s.
The slump resulted in liquidations topping $98 million in the last hour, with $91 million in upside bets getting wiped out at the time of writing. The total liquidations in the past 24 hours soared to $198 million.
Bitcoin’s Open Interest dropped 4.14% in the past 24 hours, providing further evidence of bulls being wiped out. The Long/Short Ratio dipped further, indicating the dominance of bearish bets.
The market remained in “Fear” as of this writing, according to the Cryptocurrency Fear & Greed Index.
Top Gainers (24-Hours)
| Cryptocurrency | Gains +/- | Price (Recorded at 9 p.m. EDT) |
| Monero (XMR) | +0.92% | $172.53 |
| Bitcoin SV (BSV) | +0.61% | $43.69 |
| Sui (SUI) | +0.28% | $0.7858 |
The global cryptocurrency market stood at $2.02 trillion, following a contraction of 2.56% in the last 24 hours.
Stocks plunged Tuesday, recording their worst day since the Aug. 5 sell-off. The Dow Jones Industrial Average Futures tumbled 626.15 points, or 1,51%, to close at 40,936.93. The S&P 500 slipped 2.12% to end at 5,528.93, while the tech-heavy Nasdaq Composite sank 3.26%, finishing at 17,136.30.
AI leader Nvidia Corp. (NASDAQ:NVDA) tanked 9.53%, further declining by 2.42% in after-hours trading after receiving a subpoena from the U.S. Department of Justice (DOJ.)
The slump came after fresh data revealed a contraction in U.S. manufacturing activity for the fifth consecutive month, reigniting fears of a recession. Furthermore, August marked the 21st month of contraction in the past 22 months.
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Analyst Notes: Popular cryptocurrency trader Justin Bennett stated that $53,000 has been his target since Bitcoin was rejected at $63,000. Having said that, he didn’t rule out the possibility of Bitcoin plunging further to $48,000.
“Markets love symmetry, and fakeouts to one side of a pattern usually trigger extended moves in the opposite direction,” Bennett remarked.
On an alarming note, widely followed cryptocurrency analyst Ali Martinez spotted a potential trend reversal from bullish to bearish by the stochastic RSI on Bitcoin’s 2-month chart.
“Historically, in the past 10 years, this has preceded a significant correction of around 75.50%!” Martinez emphasized.
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Photo courtesy: Shutterstock
