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Bitcoin Price Breaks Key Support: $48,000 Next

2 mins
Updated by Harsh Notariya
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In Brief

  • Bitcoin’s price dropped to $53,500, the lowest in four months, triggering investor concerns.
  • Over $589 million in liquidations occurred, including $511 million in long positions.
  • Market shaken by Mt. Gox and German government transfers, Bitcoin could drop to $48,000.
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Bitcoin’s price plummeted to approximately $53,500 during early trading hours in Asia on Friday, hitting this low for the first time in four months. This significant decline has raised alarms among investors and market analysts.

According to BeInCrypto data, Bitcoin (BTC) has fallen by roughly 6% over the past 24 hours.

Bitcoin’s Sharp Fall Liquidates Over $589 Million

The volatility in Bitcoin and the broader crypto market has caused huge liquidations. In total, $589 million was liquidated, which included more than $511 million in long positions and $78 million in shorts. Notably, nearly $100 million was liquidated in just the past hour.

Nonetheless, in an interview with BeInCrypto, Avinash Shekhar, the CEO of crypto derivatives exchange Pi42, explained that price volatility is an opportunity for short-term traders.

“Such movements usually present opportunities, especially for scalpers to recover their liquidated trades,” Shekhar told BeInCrypto.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

Crypto Liquidations
Crypto Liquidations. Source: Coinglass

Further unsettling the market, the Mt. Gox bankruptcy estate transferred billions of dollars worth of Bitcoin to an unknown wallet. According to blockchain analytics firm Arkham Intelligence, this involved moving 47,228 BTC, valued at around $2.71 billion.

Prior to this, the estate conducted several small test transactions. With repayments expected to start soon, about 142,000 BTC and 143,000 Bitcoin Cash (BCH) are poised for disbursement.

Additionally, recent actions by the German government have contributed to market anxiety. This week, it transferred about 1,300 BTC, worth roughly $75.5 million, to its wallet and several crypto exchanges, including Bitstamp, Coinbase, and Kraken. This development has exacerbated fears of further price declines.

Amid these developments, prominent crypto analyst Miles Deutscher expressed his frustration, suggesting a swift drop to $48,000 to end the market’s current turmoil.

“Can we just nuke to $48,000 already and get this sh*t over with? Dear Germany & Mt. Gox – please just jeet your entire stack. Dear retail, please just panic sell your low conviction alts. Just get the pain over with quickly, then up only,” Deutscher wrote.

Concurrently, crypto analyst Dave the Wave noted that Bitcoin had breached a critical support level at $56,500. He pointed out that the next significant Fibonacci level, around $48,000, could provide the necessary support.

Read more: 7 Best Crypto Exchanges in the USA for Bitcoin (BTC) Trading

Bitcoin Price Analysis. Source: TradingView
Bitcoin Price Analysis. Source: TradingView

Despite the market’s setbacks, Dave the Wave maintains an optimistic outlook, reminding investors that the market is “still technically in a bull market.

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Harsh Notariya
Harsh Notariya is a journalist at BeInCrypto, who writes about various topics, including decentralized physical infrastructure networks (DePIN), tokenization, crypto airdrops, decentralized finance (DeFi), meme coins, and altcoins. Before joining BeInCrypto, he was a community consultant at Totality Corp, specializing in the metaverse and non-fungible tokens (NFTs). Additionally, Harsh was a blockchain content writer and researcher at Financial Funda, where he created educational reports on...
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