Worse than March 2020? Bitcoin price drops below $ 33,000

Bitcoin (BTC) lost $ 8,000 in a matter of hours on Wednesday as the Hodlers saw the return of levels not seen since early February.

BTC / USD (Bitstamp) 1-minute candlestick chart. Source: TradingView

Bitcoin is coming for leveraged traders … again

Data from Cointelegraph Markets Pro and TradingView showed this BTC / USD stumbled to new lows of $ 32,200 on Wednesday.

The already high selling pressure continued with claims of a new Chinese offensive combined with falling stocks and a stronger US dollar.

Worse than March 2020?  Bitcoin price drops below $ 33,000
Worse than March 2020? Bitcoin price drops below $ 33,000

In what a few they call a “surrender fund”, Bitcoin was unable to hold the $ 40,000 support and began a brief free fall below its important 200-day moving average.

Although the decline in US dollars was average by Bitcoin standards, wreaked havoc among speculative traders with a single hour settlement of $ 2.7 billion. Total billing within 24 hours was $ 6.5 billion.

Philip quickly, Founder of the analytical resource LookIntoBitcoin, tweetedIn addition to a graphic: “Last Hour Leveraged Trader Liquidations Peak”.

Bitcoin liquidation diagram. Source: Philip Swift / Twitter

Rafael Schultze-Kraft, Co-founder of the analytics resource Glassnode, He added that short-term BTC investors are now at a loss and current prices are a line in the sand.

Made reference on Glassnode’s MVRV indicator for short-term holders, which looks at the price of unspent trade exits not exceeding 155 days.

“Short-term owners are now under water as STH-MVRV falls below the neutral line. Key level”he commented.

Graph of the MVRV indicator of short-term Bitcoin holders. Source: Rafael Schultze-Kraft / Twitter

Altcoins are falling online

At the time of this writing Bitcoin attempted to bottom above $ 37,000 in an uncertain situation.

As for altcoins, the prospects were just as bleak, Many of the largest cap tokens fell nearly 30% that day.

The biggest declines include Telcoin (TEL) and Shiba Inu (SHIB), which had previously posted significant gains.

Ether (ETH), meanwhile, briefly lost track of $ 2,000 before recovering.

A silver lining for Bitcoin proponents was the dominance of market capitalization, which rose from less than 40% to nearly 45%.

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