Cryptocurrency News

Market Correction Pushes Bitcoin Below $59,000, Ethereum sub-$4,000

By October 27, 2021 No Comments

Key takeaways:

  • Bitcoin fails to conquer a key resistance level and falls under $59,000 as a result
  • Following BTC’s drop, 96 out of the top 100 digital assets have been trading in the red zone
  • SHIB defies the broader market trend and breaks into cryptocurrency top 10 by market capitalization on the heels of 25% gains

After a prolonged upswing that saw Bitcoin reach a new all-time high close to $67,000 and the broader cryptocurrency market reaching the historical high, today, somewhat expected price corrections took hold.

Bitcoin’s price experienced a sharp decline after failing to conquer a key resistance level

Bitcoin has lost more than 6% in the last 24 hours of trading.

Bitcoin (along with the total cryptocurrency market cap) has dropped to its lowest point since October 15. The price of BTC started falling after the world’s largest digital currency failed to break through $63,000 resistance and is now testing the other side of the range, according to crypto analyst Michaël van de Poppe.

By zooming out and looking at the monthly performance, the situation seems far from bleak. Bitcoin has managed to grow from $43,900 at the beginning of October to a peak value of $66,900 on October 20. Even accounting for the recent retracement, BTC is still up nearly 35% month-to-date (MTD).

The three-week-long rally pulled the price of BTC to its historical high just shy of $67,000.

As is usually the case when the market faces a quick and sharp correction, a wave of leveraged positions liquidations took place. At press time, more than $870 million and 170,000 traders were liquidated in the past 24 hours, according to crypto futures trading and information platform Bybt. Ethereum led all digital assets with its liquidations amounting to $300 million, while BTC futures traders lost $182 million.

Ethereum momentarily drops below $4,000

Ethereum followed in the footsteps of Bitcoin and has lost 4.6% in the last 24 hours of trading. Despite losing a hefty chunk of its value, ETH experienced a smaller drop, especially when looking at weekly price movement. ETH was trading in a relatively tight price range all week, between $3,900 and $4,360.

The price of Ethereum has fallen to a low point of $3,931 during the last 24 hours of trading.

Along with BTC and ETH, 96 out of the top 100 cryptocurrencies are trading in the red zone. Despite the negative trend permeating the markets, Shiba Inu managed to break into the cryptocurrency top 10 on a 25% gain, which pushed the memecoin to its ATH.

The total market cap has fallen to a two-week low.

Following the considerable drops in prices of most digital assets, the cumulative value of cryptocurrencies has dropped to a two-week low and currently stands at $2.5 trillion.