Along with the Bitcoin price drop, the altcoin market also suffered a sharp correction, as leading coins such as Ethereum (ETH), Solana (SOL), XRP, and Dogecoin (DOGE) fell by 6-12%. This led to a large wave of liquidations with a total value of up to 1.76 billion USD. As Bitcoin continued to be rejected at the threshold of 100,000 USD, many investors questioned whether the “party” of altcoins was coming to an end.
Altcoins Sell Off Strongly During Market Correction
Since September, this is the sharpest decline of altcoins as traders restructure their portfolios to look for “bottom-fishing” opportunities. Bitcoin’s drop below the threshold of 95,000 USD today has increased liquidation pressure across the entire cryptocurrency market.
Cryptocurrencies that have been on a tear during the two-month bull market have seen a sharp decline in the past 24 hours, according to analysis from blockchain data platform Santiment. However, Santiment noted that if retail investors get caught up in fear and sell off their assets, the market could quickly recover as buying opportunities arise. Meanwhile, crypto analyst IncomeSharks noted that the altcoin sector remains bullish, with professional traders taking advantage of the opportunity to buy on dips.
IncomeSharks expressed optimism about the recent altcoin price drop, calling it a positive development for the market. “This is the most bullish thing that has ever happened to altcoins,” the analyst said. The correction also led to a wave of liquidations, with the total value approaching $2 billion.
According to IncomeSharks, the correction has helped the market shake out new investors who bought into the bull market while maintaining Supertrend support levels – a key bullish signal.
Meanwhile, crypto analyst Rekt Capital said that the altcoin market has been rejected at a historic resistance level. However, he noted that this correction could be less severe, suggesting that the $425 billion resistance level is weakening. This trend could signal increased momentum for a potential breakout in the near future.
