BTC/USD: Bitcoin Dips Below $89,000 to Break Key Support, Ether Wipes Out 18%. But Why?

Major crypto assets retreated as broad macro challenges dented optimism for growth in high-risk spaces.

🔥 Bitcoin Sinks 9%, Ether Doubles It

• Bitcoin prices BTCUSD sank 9% to trade under $89,000 early Tuesday as worn-out crypto traders had little to hold on to. Without any particular reason, other than fatigue from lack of market-moving news, the leading crypto asset tumbled and dragged the broad market with it.
• Ethereum ETHUSD, the second-largest cryptocurrency, washed out 18% to float under $2,400 per token as traders got super antsy and rushed to panic-sell their risk assets. The broader crypto space was down 9% to $2.88 trillion.

⚠️ Bitcoin Breaks Key Support

• With the drop factored in, Bitcoin exited a three-month long consolidation but not in the direction everyone hoped. The sharp slump took out a strong support line at $90,000 and suggested that bears might try to further pressure the token to some bear targets, the first one being an inflection point at $82,000 in an ascending parallel channel.
• Ethereum was actually doing a bit better with its chances of finding support. The 18% crash dragged prices to a long-term support line around $2,300 (so you’re saying there’s a chance?). Going back to August last year, Ether has mostly managed to float above $2,300 per token despite attempts to break the level.

🤯 Crypto Liquidations Rise Fast

• The quickly unfolding crypto crash caught traders and investors unprepared, resulting in liquidations across the board — a total of $1.4 billion in 24 hours. Bitcoin absorbed the biggest blow with more than $500 million in liquidations for the past 24 hours (about half of that in the first few hours of Tuesday trading).
• It hasn’t been easy to be a crypto bull this year. Bitcoin is now down nearly 5% since its first deals in early January despite expectations of crypto-friendly legislation that would propel the industry forward.