Over $390 Million Liquidated in Crypto Markets as Bitcoin Risks Plunging Below $60,000

Bitcoin’s price took a nosedive early on Tuesday, plummeting 7% to a low of $65,547. This sharp decline came after relative stability, with the cryptocurrency trading in the $70,000 range for the past week. The sudden crash resulted in the liquidation of roughly $395 million in the crypto market, according to data from Coinglass.

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, was not immune to the turmoil, falling by roughly 5% to $3,325. This drop has raised concerns among investors, with analyst Ali Martinez warning that Ether’s inability to hold above $3,460 could lead to a further correction down to $2,850 or lower.

The sudden market volatility has also sparked a flurry of analysis and predictions from other players in the field. Experts from onchain analytics firm Checkonchain weighed in on the current market conditions, tweeting that the classic Bitcoin MVRV Ratio is in a “heated but not yet overcooked” state. This indicates that the average Bitcoin holder is holding a decent unrealized profit multiple. This suggests that spending may increase, which, despite potentially pushing prices lower, could contribute to the cryptocurrency’s growth.

“A few of these folks have actually started taking profit, with the $73k peak aligning exactly with a cycle high-Profit event of +352k $BTC Profit taking is a normal part of Bitcoin bulls, but it is a key factor in establishing resistance at local tops,” the experts said.

Julio Moreno, Head of Research at Cryptoquant, also shared his insights, noting that Bitcoin’s price upward momentum may be slowing down, as shown by declining unrealized profit margins. However, the pundit emphasized that retail investors continue to aggressively buy the Bitcoin price dips, indicating a strong demand for the cryptocurrency.

Elsewhere, in a YouTube video, renowned Bitcoin analyst PlanB made a bold prediction, forecasting that Bitcoin will reach $100,000 this year and potentially soar higher in the coming years.

He advised investors to remain calm and refrain from panic selling during downturns. He pointed out that previous bull markets have seen exponential growth in Bitcoin’s price, with occasional dips of 20% to 30% being part of the normal market cycle.

Notably, PlanB’s stock-to-flow model, which tracks Bitcoin’s price movements relative to its scarcity, suggests an average price level of $500,000 during the halving period.

While short-term predictions are inherently uncertain, analyst Martinez warns that Bitcoin’s price may experience a bearish trend in the upcoming one to four weeks, as indicated by the TD Sequential indicator’s sell signal on the weekly chart.

At press time, Bitcoin was trading at $65,413, reflecting a 6.32% drop over the past 24 hours, according to CoinMarketCap data.