The cryptocurrency market was a sea of red this Monday morning, with Bitcoin falling 5% in an hour or so and altcoins suffering major losses. Moreover, liquidations have reached hundreds of millions in the past few hours.
A cryptocurrency market correction is underway, with millions of liquidations occurring during the Asian trading session on Monday morning.
Cryptocurrency leverage flushout
According to Coinglass, in the last 12 hours, cryptocurrency liquidations reached $354 million. The majority were long positions with a liquidation amount of approximately $313 million.
Additionally, as Coinglass reports, 117,770 traders were liquidated, with a total liquidation volume in the last 24 hours of just over $400 million.
Bitcoin price fell 4.4% daily, with the asset down to $41,926 at the time of this writing. BTC fell nearly 5% in less than two hours, from an intraday high of $44,000 to an intraday low of $41,783.
The asset appears to have found support at current levels following the formation of a rarely seen “Baht chart” formation. In the next step, the BTC price will fall to $39,500.
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Cryptocurrency trader “RamenPanda” said, “I’ve told you about flash dumps several times. The dump is now complete.”
“It will take a long time for Bitcoin to resume its upward trend,” he added, predicting that altcoins will now start to move.
Others have suggested this is just a leveraged flushout. “This was a 100% planned and coordinated move to liquidate highly leveraged gamblers.” said Cryptocurrency trader “ImNotTheWolf.”
Moreover, a busy week awaits on the U.S. economic calendar. Federal Reserve meetings and inflation data typically result in increased market volatility, as we have already seen this week.
There is no alt season yet
Altcoins are suffering bigger losses as usual. The total market capitalization has fallen by about $80 billion, or 4%, over the past few hours.
As of this writing, the price of Ethereum was $2,238, down 5% on the day. However, other altcoins are suffering bigger losses.
XRP fell 7% on the day to $0.621, and Solana (SOL) fell 5.7% to $68.90.
Additionally, Cardano (ADA), Polkadot (DOT), Chainlink (LINK), Polygon (MATIC), Shiba Inu (SHIB), and Litecoin all fell by more than 6%.
Few altcoins are bucking the trend, but among them Avalanche (AVAX), Immutable (IMX), and Injective (INJ) are on the rise today.
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