The post Crypto Sell-Off: Why Has Crypto Dropped Today? Bitcoin, Altcoins Plunge Amid Crypto Liquidations appeared first on Coinpedia Fintech News
The crypto market is facing a sudden crypto sell-off today, with Bitcoin dropping sharply from $115K to $112K within minutes. This rapid movement has many traders asking, “Why has crypto dropped today?”
Analysts suggest the dip is likely driven by crypto liquidations today and stop-loss hunting, as large positions get automatically closed, causing cascading downward pressure.
Despite the sharp decline, long-term market sentiment remains bullish. Bitcoin is holding a key support level above $110K, which has acted as a foundation since May. If prices dip further toward $104K, the overall bullish trend remains intact.
Historically, September has remained positive with Bitcoin up 5.7%, and October is typically one of the strongest months for Bitcoin, signaling potential gains ahead.
The Crypto Fear & Greed Index has dropped to 45%, signaling a shift from optimism to doubt, while over $1 billion in liquidations has occurred in the last hour, with the majority coming from long positions. This suggests highly leveraged traders are being forced out of the market, potentially setting the stage for a bounce if support holds.
Altcoins Present Attractive Buying Opportunities
Altcoins are showing mixed reactions amid the sell-off. Ethereum (ETH) is holding around $3,500, while XRP has tested key support near $2.79. Solana (SOL) and Cardano (ADA) are also approaching crucial support levels, offering potential buy-the-dip opportunities if they hold.
The ongoing crypto sell-off has created strategic entry points for altcoins. Solana (SOL) fell from $253 to $223, offering an attractive opportunity for traders.
Also Read : Why Bitcoin, Ethereum, and XRP Prices Are Crashing Today? ,
Other tokens like ASTRA on Binance and PUMP, currently testing support around $48, are showing signs of consolidation, making them ideal candidates for disciplined investors.
Waiting for one to two days of sideways action before entering positions helps mitigate the risk of being caught in stop-loss hunting, a key factor in today’s crypto liquidations.
Institutional investors are taking advantage of the dip. MetaPlanet reportedly purchased an additional $600 million in Bitcoin, showing strong long-term conviction. Such buying helps stabilize the market and reinforces the underlying bullish trend despite the volatility.
Currently, the market is in a large-cap season led by BNB, Solana, and Ethereum. Analysts predict that the market may transition into an altcoin “all-season” in the coming weeks, providing fresh opportunities for investors. However, older tokens from previous cycles may not recover, emphasizing the importance of careful coin selection.
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