Crypto News

Bitcoin plunges by over 5%, dropping below $42,000

BTC dropped by more than 5% Source: DailyFX

The crypto market had a rocky start to the week, with major players such as Bitcoin (BTC) and Ethereum (ETH) dealing with a bearish trend in intraday trading.

According to CoinMarketCap, BTC dropped by more than 5%, falling to $41,649 before recovering to $42,510 within a 24-hour period.

Over the last day, CoinGlass data revealed a total of $411 million in liquidations, with $357 million linked to long positions in the broader crypto market.

The heatmap of liquidations revealed significant liquidations, including over $104 million in Bitcoin and $82 million in Ethereum. Small-cap altcoins were also impacted by market volatility, contributing to the overall decline.

Despite the downturn, Bitcoin remained bullish and broke through the $42,500 resistance level. BTC is currently trading at $42,182, with a daily trading volume of $24.7 billion, representing a significant 54% increase in the last 24 hours.

Bitcoin is currently in a recovery phase, with crucial resistance around the $42,600 level. A break above the $43,000 resistance level could spark bullish momentum, potentially propelling BTC to $43,650.

A decisive close above this level could spark a strong upward trend, with the next significant resistance at $43,950 and further potential gains toward $44,500.

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Mohammad Ali is a fintech and cryptocurrency writer who has been covering the intersection of finance and technology for several years. Ali has a deep understanding of the financial industry and the ways in which technology is changing it, with a special focus on the rise of digital currencies and blockchain technology.