Bitcoin Dramatic Sharp Drop Affects Other Cryptocurrencies

Following a sharp drop on Friday afternoon, from around $57,000 to $ 53,000, Bitcoin is dramatically accelerating its fall this Saturday morning, falling below the major threshold of $50,000 for the first time since early October.


The BTC / USD has indeed marked a low of $ 42,100 this morning, after dropping $ 9000 in less than 3 hours. Between yesterday’s high of $ 57,500 and today’s low, Bitcoin plunged nearly 27%.

No major information seems to justify this movement, which occurs in the context of reduced liquidity specific to weekends.

On the other hand, we can emphasize that the President of El Salvador reacted quickly, having already announced that his country; which recently validated bitcoin as legal tender, bought 150 coins:

From a graphical point of view, we should note that the collapse of Bitcoin since yesterday has had several important technical consequences, with several key down signals.

Bitcoin indeed broke below its 100-day moving average yesterday, and sent new negative signals today by breaking below an uptrend line that was visible since July 20.

The breakout below the major threshold of $ 50,000 is obviously also a crucial bearish signal. Finally, the last phase of the bitcoin fall caused the cryptocurrency to test its 200-day moving average; currently at $ 46,270.

For now, BTC / USD has risen above this indicator, and is currently trading at $ 47,500.

Other Cryptocurrencies Affected By The Dramatic Bitcoin Drop From 57K to 45K

Finally, also note that this Bitcoin collapse had consequences on most other cryptocurrencies. The Ethereum appears indeed to $ 3875, down 15% over 24 hours. Solana loses almost 18%, while Cardano loses more than 20%.

No cryptocurrency in the top 100 is currently showing an increase over the last 24 hours.

“So far I’ve seen upwards of 4000 BTC being sold that pushed the market abruptly down,” Laurent Kssis; a crypto exchange-traded fund expert and director of CEC Capital.

“In fact, 1,500 BTC alone was sold in less than a minute at the time of the drop.”

Data tracked by Coinglass shows the price drop has triggered nearly $600 million worth of bitcoin futures positions in less than an hour. The market appeared over leveraged earlier this week with open interest (OI) elevated in bitcoin terms.

“The bitcoin denominated OI has now remained above 365,000 BTC for more than a month. It is not common to see such high OI sustainability for such a long duration. This could suggest that the market is currently over- saturated with leverage,” Arcane Research’s weekly note published Tuesday said.
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