Bitcoin Plummets Below $58K, ETH, SOL, DOGE Follow: Over $400M Liquidated In 'Deepest Retrace In The Cycle'

Cryptocurrency markets continue to bleed, with the FOMC meeting and poor ETF performances in the U.S. and Hong Kong weighing heavy on the markets.

What Happened: Bitcoin BTC/USD, Ethereum ETH/USD, Solana SOL/USD and Dogecoin DOGE/USD started May with heavy losses.

Prices as of 7.30 a.m. Eastern Time:

At the time of writing, total crypto liquidations in the past 24 hours stand at $447.3 million, with $377 million worth of long positions liquidated. $142.5 million worth of long positions on Bitcoin were liquidated.

Total trading volumes in the past 24 hours increased by 49.6% to $103.6 billion, while Bitcoin trading volumes in the past 24 hours increased by 61.3%.

Top Losers:

Santiment data suggests that traders should watch for a spike in volume as a potential turnaround signal for a market-wide rally heading into May. However, it’s worth noting that Bitcoin’s trading volume has dropped by 60%-65% since its peak in late February.

InvestAnswers, a popular trader, pointed out that despite the drop and massive ETF selling, a whale accumulated 1,200 BTC worth $68 million, which is three times the daily issuance. The trader also noted that a typical bull run has two 20-30% dips, and the current 23% retrace from all-time high levels is not unusual.

IntoTheBlock data highlights that transactions greater than 100,000 surged from 8,519 on April 29 to 11,160 on April 30, with large transaction volumes widening by 21.3% to 57.4 billion.

Also Read: Bitcoin, Dogecoin, Shiba Inu Pumped After The Last FOMC Meeting—Will History Repeat On Wednesday?

Analyst Notes: Technical analyst Crypto Con noted they are patiently waiting for Bitcoin to retest its 20-week EMA, now at $57,137, as the last retest was in January 2023. They point out that it is "good for price to revisit this moving average every few months so it is not parabolic" and that 2015 to 2017 saw eight such retests.

Rekt Capital sees this drop as "officially the deepest retrace in the cycle (-23.6%)." Another crypto trader, Captain Faibik, sees Bitcoin moving inside the Bullish Flag Pattern while the daily RSI is below the multi-month trendline. He expects Bitcoin to bounce back to $68,000 in the upcoming days.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: Is Bitcoin Heading For A Dip Ahead Of FOMC? Analyst Predicts Potential ‘Cascade Towards $55-58K’ Before Rebound