Bitcoin, Ethereum price drops sharply

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The crypto market gives earlier gains and turns red in US times, witnessing a sell-off in the broader market. The global crypto market cap fell over 2.60% to $1.18 trillion, with over $182 million in crypto assets liquidated in the past 24 hours.

Bitcoin price fell 5% below $28,500 with the price currently trading at 28,573. In the past 24 hours, BTC price recorded a low and high of $28,468 and 29,820 $, respectively.

Ethereum prices also dipped below the $2,000 level. The price of ETH has fallen over 7% in the past 24 hours, with the price currently trading at $1,882. The 24-hour low and high are $1,870 and $2,017 respectively.

The Ethereum foundation and Ethereum creator Vitalik Buterin selling over 15,000 ETH is likely the trigger for the recent crypto market sell-off. CoinGape Media reported that the last major sale of ETH by Ethereum Foundation and Vitalik Buterin in November 2021 caused the price of ETH to drop by 40% in 2 months.

Also read: Ethereum Foundation and Vitalik Buterin Move 15K ETH; Is an ETH crash coming?

Altcoins including PEPE, FLOKI, LUNC, Arbitrum, Litecoin, and Aptos saw a major drop. Massive profit bookings were recorded in PEPE and FLOKI after both rose by more than 50% in the past 24 hours. Binance has introduced some restrictions in the market order functions for trading pairs mainly Shiba Inu (SHIB), FLOKI and PEPE.

Massive liquidation of Bitcoin and Ethereum

Data from Coinglass revealed a massive liquidation of over $182 million today, May 6. Nearly 65,000 traders have been liquidated in the past 24 hours, with the largest single liquidation order on Bitmex’s ETHUSD pair worth $7.70 million.

Crypto Clearances. Source: Coinglass

Open interest fell nearly 5% today as traders anticipate a slight correction in the market. Meanwhile, Bitcoin Coinbase Premium surged, indicating a difference between the Coinbase Pro price (USD) and the Binance price (USDT). However, Bitcoin aSOPR climbed above 1, indicating that more investors are selling for profit.

It looks like the price of BTC will fall below the 50-DMA as the pattern shows weakness and strong possibility for correction. Also, 20-DMA goes below 50-DMA. Bitcoin price needs to recover $29.2k for bullish momentum and hold above the $28.4k level.

Bitcoin price. Source: Trading View

Read also: Did you miss PEPE and Shiba Inu (SHIB)? Track these whales by investing early in projects

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