Bitcoin It fell to a big new low in the current bear market.
On Saturday morning, the price of Bitcoin fell below $20,000, according to data from CoinMarketCapA significant milestone seen as a critical support level for the top cryptocurrency by market cap. At press time, Bitcoin is trading at around $19,460, down more than 6% on the day.
Although the BTC breakout of $20,000 is a largely token barrier, Experts believe a drop below this level Could lead to a wave of “forced liquidation”, where large-scale cryptocurrency investors will be forced to close positions on BTC derivative products because they now have insufficient collateral. Such events are likely to lead to a further decline in the bitcoin price, leading to more liquidations.
at the time of publication, Ethereum, still above the $1,000 support level, albeit partially; It is currently trading at around $1,020.
The total market capitalization of all cryptocurrencies is currently around $853 billion, down more than 5% in the last 24 hours.
according to Arthur HayesThe former CEO of BitMEX, the $20,000 and $1,000 price levels of BTC and ETH, respectively, which, if breached, would lead to “enormous selling pressure.”
If you break these levels, 20 thousand dollars BTC dollars & 1 thousand dollars ETH dollarWe can expect massive selling pressure in the spot markets as traders hedge themselves. We can also expect that there will be some erratic traders who will not be able to hedge properly and may rise in the belly.