The post Bitcoin Faces Potential 75% Crash as Market Liquidations Surge Amid Wall Street Turmoil appeared on BitcoinEthereumNews.com.

The recent downturn in the S&P 500 has triggered significant liquidations across the cryptocurrency market. As Bitcoin struggles to maintain its value, multiple bearish indicators suggest a potentially dramatic decline is on the horizon. Prominent analysts, including Ali Martinez, warn that historical trends indicate a significant correction could be imminent for Bitcoin. This article examines the recent crash in both the S&P 500 and the cryptocurrency market, highlighting key indicators that suggest a bearish trend for Bitcoin and altcoins. Bitcoin Faces Major Liquidation Following S&P 500 Decline On Tuesday, a sharp drop of over 2% in the S&P 500 was mirrored in the cryptocurrency sphere, particularly affecting Bitcoin, which fell by 4.5%, bringing its price down to approximately $56,500. This significant decline has triggered a wave of long liquidations in Bitcoin, with current figures revealing approximately $246.64 million at risk should the price drop further beneath the critical level of $56,840. Bearish Signals Emerge from Technical Analysis Technical analysis by respected analyst Ali Martinez has highlighted troubling bearish indicators, particularly on Bitcoin’s 2-month Stochastic RSI chart. This trend shift has historically been followed by substantial corrections, with previous patterns showing Bitcoin has faced declines of around 75.5%. As the trend seems to be shifting from bullish to bearish, investors are advised to remain cautious amidst these signals. Institutional Trends and Bitcoin ETF Outflows In conjunction with Bitcoin’s price volatility, there has been a notable increase in Bitcoin ETF outflows, which surged beyond $287 million on Tuesday. This trend reflects a shift in market sentiment as institutional investors move away from risk-on assets, potentially influencing Bitcoin’s near-term prospects negatively. Wall Street’s Reaction to Economic Developments The correlation between the stock market’s performance and cryptocurrency values has been evident, particularly following significant news events. The recent subpoena issued to chipmaker Nvidia by…

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Filed under: News - @ September 4, 2024 6:20 am