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Bitcoin Price Prediction: BTC Plummets To $45,000 As Liquidations Soar To $312 Million In An Hour

Bitcoin and cryptocurrencies suffered yet another blow on Monday during the Asian session. The massive drop of more than 5% in the crypto total market capitalization has mainly been fueled by liquidations on derivative exchanges. In less than an hour, liquidations increased to over $312 million, with Bybit accounting for more than half precisely $153 million.

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Losses are ongoing across the vast cryptocurrency market, with some top cryptocurrencies affected the most. Bitcoin corrected by over 5% to trade around $46,000 at the time of writing. Ethereum has also not been spared the ax, trimming 6.2% off its value in 24 hours. Similarly, Solana seems to have bled the most as losses amounted to 12% in the same period.

Bitcoin Price Hunt For Formidable Support Begins

Last week, Bitcoin closed the gap toward $50,000, putting up a fierce fight but stopped within a whisker of $49,000. An immediate reflex correction took precedence, resulting in initial losses to $48,000, which later stretched to $47,000.

The bearish leg continued, most likely triggered by the colossal liquidation of long positions on derivative exchange platforms as observed. Bitcoin extended the downward action near $45,000, whereby support is anticipated.

Nonetheless, we cannot ignore the vivid bearish picture considering the short timeframe analysis. For instance, the Moving Average Convergence Divergence (MACD) emphasizes the massive bearish view.

As the price dropped from weekend highs, the MACD closed the gap back to the mean line. Currently, the momentum calculator has slipped into the negative region, suggesting that sellers are dominantly in control.

BTC/USD Daily Chart

BTC/USD price chart by Tradingview

Realize that the 100 Simple Moving Average (SMA) has recently crossed below the 200 SMA, adding weight to the bearish narrative. This pattern is not a golden cross, but analysts use it to validate an ongoing downtrend. Therefore, if support at $45,000 fails to hold, Bitcoin will likely drop to $44,000.

Bitcoin Intraday Levels

Spot rate: $45,492

Trend: Bearish

Volatility: High

Support: $45,000 and $44,000

Resistance: $46,000 and $48,000

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
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 20.09.2021

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