- Bitcoin’s rally cooled off after being rejected twice at the $90,000 level, leading to a 2% daily decline
- Meme coins like Dogecoin and Shiba Inu retraced by double digits, with Shiba Inu plummeting 17% and losing its spot as the 10th largest cryptocurrency
- The market volatility resulted in around $900 million worth of liquidations, with over 280,000 traders being liquidated
After a week of gains and consecutive all-time highs, bitcoin’s run has finally cooled off as the asset was rejected twice at the $90,000 level. As expected, the more volatile altcoins like Shiba Inu and Dogecoin have experienced even more turbulent corrections over the past day.
Bitcoin’s Rally Cools Off After Hitting $90K Resistance
It was a mindblowing week for bitcoin, which started with Donald Trump’s win in the 2024 US presidential elections last Wednesday. The asset started to gain traction even before the results were official due to Trump’s substantial lead.
Bitcoin flew past its March ATH of $73,737 last Wednesday and kept pumping in the following days. During the weekend it broke above $80,000 and soared by about eight grand on Monday. The bulls initiated another rally yesterday that drove the cryptocurrency to $91,000 on a couple of occasions.
However, bitcoin failed to overcome that level at first, and the subsequent rejections pushed it south by up to $5,000. However, BTC now trades above $93,000, almost as if the pullback never happened
Double Digit Losses for Dogecoin and Shiba Inu
Many altcoins have retraced even harder. DOGE, which has been at the forefront of this massive rally, dropped by 10% to under $0.37. The OG meme coin peaked at $0.44 yesterday and is currently trading at $0.41.
Cardano, which also was a massive gainer due to a recent Hoskinson announcement, dropped by 10.5% to $0.53. However, price has recovered following the announcement that Robinhood would be relisting ADA, once again sparking bullish price momentum.
Shiba Inu has dumped the most from the larger-cap alts, losing its 10th spot to TRX. SHIB has plummeted by 17% and now struggles to remain above $0.0000024.
Almost $900M Total Liquidations
This volatility has harmed over-leveraged long traders, with roughly 280,000 such market participants liquidated over the past 24 hours. The total value of liquidations is up to over $900 million, with longs responsible for the lion’s share.
Conclusion
After a parabolic rally last week, bitcoin and major altcoins are witnessing a cooldown. Support levels will be tested as overleveraged longs continue getting liquidated. Many believe Bitcoin would reach upwards of $100,000 but fall short as many traders will look to front-run such a monumental price level. This alone will likely cause massive liquidations market-wide, from big caps and small caps alike as the market will follow Bitcoin price volatility. It remains to be seen whether the bull market will resume with renewed strength.
