Cryptocurrency markets have experienced a significant decline in the past 24 hours, resulting in a total market capitalization of less than $2.5 trillion. This represents a 5% decrease from the previous day. The decline has affected various sectors, including major cryptocurrencies like Bitcoin, Ethereum, BNB, and Solana, as well as the overall market.
Bitcoin, for instance, has seen a sharp drop in its price, falling to around $56,500. As of the time of analysis, it was trading at approximately $57,200, reflecting a decline of over 6% in both the past 24 hours and the week.
Since reaching its peak above $63,500 on July 1, Bitcoin has been on a consistent downward trend. The inability of bulls to sustain buying pressure has allowed sellers to take control and push the price down to its current levels.
Furthermore, the recent market pullback has led to over $300 million in liquidated positions, mostly consisting of long positions. This indicates that the market is under significant selling pressure.
The situation is similar for altcoins, as the cryptocurrency heat map shows a widespread decline in the past 24 hours. Solana, for example, has experienced an 8% decrease in value. LINK and SHIB have also followed this trend, with drops of 9% respectively, while the meme coin PEPE has seen an impressive 11% decline.
Meme coins, in particular, have been hit hard by this negative trend, with double-digit percentage drops. This poses a significant challenge for this segment of the market.
When considering the market as a whole, the downtrend continues, leading analysts to focus on the critical support level at $56 for Bitcoin. This level will play a crucial role in determining whether the market can stabilize or if further declines are in store.
It is important to note that the views and opinions expressed in this article are for informational purposes only and should not be considered as financial or investment advice. Investing or trading cryptocurrencies carries a risk of financial loss.
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