The entire crypto market has become wildly unstable after Bitcoin breached its strong support of $40K and touched the low of $34K. Bitcoin has been going through a bearish trend for almost a month; however, analysts had not expected a sudden and extreme downward movement in the first month of this year. With Bitcoin abruptly breaching the $35,000 price line, the entire crypto market became red, with top coins losing up to 20% within 24 hours.
Furthermore, this entire downward movement had led to the liquidation of longs that were placed around the $35K price line. The total liquidation has crossed the $1 Billion mark with up to 80% of the liquidation of Longs. According to Coinglass, the total cumulative longs liquidated within 24 hours was $987 Million, while the shorts were $154 million. The total liquidation of $1 billion has come after the last flash crash of Bitcoin in December. It had led to a total liquidation of up to 1.58 Billion US dollars. This is the first instance of Bitcoin price touching $35K since its All-time high of $69K in November last year.
With this plunge in Bitcoin price, the Fear and Greed index also nosedived to 13, showing extreme fear in the market and a further decline. Technical factors indicate the further decline, and $29K is strong support until Bitcoin price stabilizes at the $35K range.
While the crypto market is going through very turbulent times, many big investors are tapping this opportunity with massive buying. Bitcoin Ardent supporter and President of El Salvador Nayib, Bukele bought 410 Bitcoin for $15 million and considered it ‘Really Cheap.’