Amid Bitcoin’s price decline, altcoins like Ethereum (ETH), Solana (SOL), XRP, and Dogecoin (DOGE) have taken a significant hit, with corrections ranging from 6% to 12%. This sharp sell-off triggered crypto liquidations totaling $1.76 billion. As Bitcoin struggles to maintain the $100,000 level, investors are questioning whether the altcoin rally has come to an end.
Altcoins Face Heavy Selling Pressure
Since September, traders have been reshuffling their positions to capitalize on dips, making today’s sell-off the fastest exit for altcoins in months. Bitcoin’s drop below $95,000 amplified liquidations across the broader crypto market.
Blockchain analytics platform Santiment noted that cryptocurrencies that experienced notable gains during the recent bull run have faced sharp declines over the past 24 hours. However, it also suggested that panic-driven sell-offs by individual traders could create buying opportunities, potentially leading to a swift market recovery.
Crypto analyst IncomeSharks echoed this sentiment, pointing out that professional traders are using the dip as an opportunity, keeping the sector’s supertrend intact.
Analysts Share Mixed Sentiments
IncomeSharks described the correction as a bullish development for the market, calling it “the best thing to happen to altcoins.” The recent pullback, which caused nearly $2 billion in liquidations, allows new buyers to enter the market while maintaining key support levels.
Meanwhile, analyst Rekt Capital highlighted that the overall altcoin market faced rejection at a historical resistance level. However, they suggested that this pullback might be less severe than previous ones, with the weakening $425 billion resistance hinting at growing momentum for a potential breakout.
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Liquidations Surpass $1.7 Billion
Data from Coinglass shows that total crypto liquidations reached $1.76 billion in the past 24 hours, including $1.58 billion in long positions and $185 million in shorts. This turbulence affected 583,647 traders, with the largest single liquidation order of $19.69 million occurring on Binance’s ETH/USDT pair.
Popular analyst Michael van de Poppe described the day’s events as “dramatic” but expressed optimism:
“Some altcoins dropped as much as 30% today. Don’t worry, this will recover quickly. Such a massive crash often clears the way for stronger moves ahead.”
Bitcoin Dominance on the Rise
Following the sell-off, Bitcoin’s dominance in the crypto market has climbed further. Analyst Benjamin Cowen highlighted this milestone, noting that Bitcoin dominance recently returned to a critical wedge level, excluding stablecoins. Cowen suggested that as long as dominance stays below this level, altcoin-to-Bitcoin pairs (ALT/BTC) remain structurally stable.
Conclusion
The recent crash highlights the volatility of the crypto market, but analysts remain divided on the implications. While some see it as a healthy correction paving the way for growth, others urge caution. For now, all eyes remain on Bitcoin’s dominance and its impact on the altcoin market.
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