Bitcoin’s Value Plummets by Over 6% to $58k Before Bouncing Back

Bitcoin faced a sharp decline of over 6% on August 27, dropping to a low of $57,880 before showing a slight recovery. The significant losses occurred within an hour after Bitcoin lost the crucial support level of $61,000 and continued its downward trend until stabilizing at a new level.

At the time of reporting, the primary cryptocurrency was still down by 6% in the past 24 hours, trading at $59,300 as buyers tried to push for a rebound, according to data from CryptoSlate. The broader market followed suit, with major cryptocurrencies experiencing notable drops from the recent highs witnessed over the weekend.

Among the large-cap cryptocurrencies, Ethereum (ETH) suffered the most during this period, plunging nearly 10% in a day to reach a low of $2,388 before recovering. Similarly, Solana (SOL) also faced a decline, hitting a low of $145 before bouncing back.

As of the latest data, ETH and SOL were trading at $2,454 and $147, respectively, marking decreases of 8.6% and 6.5% over the past 24 hours. Binance Coin (BNB) performed relatively better, showing a 3.6% decline and trading at $529.

The remaining top 10 cryptocurrencies experienced drops ranging between 5% and 7%, with the exception of TRON, which was down by 2% at the time of reporting. Conversely, Toncoin (TON) defied the market trend by recording a 4.8% increase in the last 24 hours. However, the coin had faced a 20% decline over the previous week following the arrest of Telegram’s founder and CEO Pavel Durov in France.

Over the past day, the market witnessed liquidations exceeding $300 million, with a majority occurring within the last four hours based on data from Coinglass. Most of the liquidations involved long positions, with approximately $193.16 million being liquidated during this period. Short liquidations accounted for $12.03 million.

Bitcoin long liquidations led the way, totaling $73.35 million, followed by Ethereum at $59.99 million, and Solana at $8.9 million, making up the top three in terms of long liquidations.

The market volatility and liquidations underscore the ongoing fluctuations and challenges faced by cryptocurrency investors, highlighting the need for caution and risk management strategies in the ever-changing crypto landscape.