Bitcoin falls below $42,000, AVAX gains 16% in 24 hours

Crypto market overview: The last 24 hours have been highly volatile for the crypto market with Bitcoin and ETH losing 1.12 per cent and 1 per cent respectively while AVAX gained more than 16.41 per cent, leading the altcoin rally. The total crypto trade volume of the crypto market surged 28.29 per cent but the market cap fell by 0.4 per cent in the last 24 hours. 

The Crypto Fear and Greed Index also fell by 7 points after the short term profit booking in the market and currently hovers at 67 points out of 100 in the scale. 

Image credit: Alternative.me

Underlining the role of long liquidations in the recent Bitcoin price correction, Rajagopal Menon, Vice President, WazirX said, “Bitcoin is grappling with escalating liquidation concerns, shedding $66.29 million in the past 24 hours, with a significant portion ($46.58 million) attributed to long liquidations. The 10-day moving averages reflect the sentiment from the previous day, pointing toward a Sell.”

“It's worth noting that the value of liquidations per percentage point has markedly reduced in 2023 compared to 2021, indicating a maturing market over the past two years. Ethereum is on a parallel course, witnessing $34.64 million in liquidations over the last 24 hours, with the majority ($34.24 million) stemming from liquidations of long positions.”

Meanwhile, Shiba Inu is experiencing a surge in value, fueled by significant whale accumulation and the launch of Shibarium's new staking protocol. 

While talking about the potential market recovery, CoinDCX Research Team said, “Over the last 24 hours, the market exhibited high volatility, witnessing a majority of tokens experiencing losses. However, today, the market is showing signs of recovery, particularly in Ethereum's Layer 2 solutions like OP (Optimism) and Immutable-X (IMX), which are outperforming. Both BTC and ETH are in positive territory. While it initially seemed like a market shakeout, signalling a potential recovery, more confirmations are needed. The ongoing correction might be a bear trap, constituting a healthy adjustment within the broader bullish trend established in recent months.”

“Notably, the announcement of Monthly US CPI data today could introduce additional volatility to the market,” CoinDCX added.

CoinSwitch Markets Desk said, “After an unprecedented 8 weeks of green candles, Bitcoin has finally begun to correct a bit as it found psychological support around the $40k mark. With CPI data expected today, such a price move has increased the chances of heightened volatility as bulls and bears look to take long-term positional bets.”

Edul Patel, CEO, Mudrex also highlighted the role of increasing BTC liquidations in the market. Patel said, “Over the past 24 hours, Bitcoin saw a decline to the $40,000 mark, due to heightened liquidations. However, bulls are actively safeguarding the $40,000 support, and BTC's current trading price is $41,000. Bitcoin is in a recovery phase, encountering resistance at $42,400. A failure to breach this level could lead to support at $41,200. Ethereum is aligning its movements with Bitcoin, self-correcting and currently trading at $2,236 after buyers defended the $2,220 support. The market is eagerly awaiting the US FOMC meeting on the key interest rate set for today and tomorrow.”

Shivam Thakral, CEO of BuyUcoin said, “The markets are expected to remain volatile this week ahead of the Fed’s rate hike decision and release of CPI data. Bitcoin witnessed a major fluctuation in its value on Monday which resulted in liquidations worth $200 million as per data from Coinglass. The current pullback is a healthy one and BTC is well-positioned to touch the $50,000 mark in the first half of 2024. AVAX is currently leading the altcoin surge with double-digit growth in 24 hours.”

Crypto price prediction

Sharing insights into the crypto market Vikram Subburaj, CEO, Giottus said, “The crypto market has taken a downturn in what seems like a liquidity grab. Bitcoin is now consolidating near $41,800 after a wick at $40,300 earlier today. Bitcoin should rally towards $44,000 and then $48,000 in the upcoming weeks as the market structure remains intact. In case of a further drop, BTC should bounce from the $39,400 level (closure of CME gap).”

Giving new short-term targets for key cryptocurrencies, Subburaj said, “Key altcoins - BNB and Avalanche - have shown resilience and are up 8 per cent and 18 per cent respectively on a daily basis while other altcoins are trying to hold their gains. Key immediate targets for top altcoins are: Ethereum ($2,250), BNB ($260), Solana ($72) and Cardano ($0.6).”

In other news, Binance has announced that it will stop supporting the Russian currency, the Ruble, on its platform.