The crypto markets are witnessing massive sell-offs, which have dragged the major cryptos below their pivotal support levels. Bitcoin dropped below $94,000 initially and later formed the bottom below $92,000 and interestingly, it does not appear to halt the ongoing bearish trend. A probable reason for the circulating fear and uncertainty within the markets is speculated to be Trump continuing with 25% tariffs on Canada and Mexico, which could fuel the trade war fears.
The markets underwent the largest liquidation of the month of over $815 million in the past 24 hours, with BTC experiencing more than $270 million in liquidation alone during the last trading day.
Besides, the series of long liquidations has been continuing since the early trading hours, recording more than $116 million. Nearly 2,86,596 traders have already been liquidated, with the single largest liquidation recorded being over $10 million. The market sentiments have plunged below 30, suggesting the traders are currently under fear.
What’s Next for the Bitcoin & Ethereum Prices?
Bitcoin and Ethereum are touching crucial support levels, which may trigger another bearish wave if they are not defended well. The RSI of BTC has marked the lowest levels not seen since September 2024, hinting towards the rally heading to mark the bottom. Besides, the bounce does not appear to be strong enough, which could reinstate a strong ascending trend. Therefore, the BTC price is now feared to drop to $90,000 or levels below the range, which may attract notable liquidity.
On the other hand, Ethereum’s price not only broke below the pivotal ascending trend line but also failed to hold within an important support zone. Currently, the price is struggling to defend the local support at $2500 and if it fails to rise and recover above $2600, it’s a bullish possibility and probability of Altseason, both of which may drop hard. On the other hand, Bitcoin dominance is scaling up by rising above 61%, while the Altcoin season index has dropped to 22, suggesting the market is more lenient towards Bitcoin.
Overall crypto market sentiment has dropped to fear, which suggests the panic selling is expected to continue for some more time. This could keep the markets under the bearish influence, probably until the end of the monthly trade.
