$295M Liquidated as Bitcoin and Ethereum Downtrend Continues

Cryptocurrency investors suffered the biggest sell-off in over a week as bitcoin and most altcoins continued their downtrend.

bitcoin and altcoin liquidations increase

Data collected by Coin crystal The report shows that total liquidations on Friday, September 6, amounted to more than $221 million, up from $72 million the day before. It was the largest increase since August 27, when liquidations soared to $281 million.

• bitcoin (btc), the largest cryptocurrency, led the liquidations with more than $114 million;
• ethereum (eth), value of $72 million and
• Solana (SOL), $14 million.

bitcoin and other cryptocurrencies fell as investors dumped risky assets and headed for safe havens. The tech-heavy Nasdaq 100 index fell more than 500 points, while the small-cap Russell 2000 index slumped more than 1.96%.

The drop came after the US published mixed employment reports, which indicated that the Federal Reserve would implement a 0.25% cut instead of the expected 0.50%. The figures showed that the unemployment rate fell slightly to 4.2%, while wage growth recovered.

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There is a risk that bitcoin and other altcoins will continue to fall in the coming weeks. On the one hand, a sense of fear is spreading in the market, as the fear and greed index has fallen to the fear area of ​​30. In most periods, cryptocurrencies retreat when investors are afraid.

bitcoin and ethereum are also experiencing weak institutional demand as their ETFs continue their outflows. btc-spot” target=”_blank” rel=”nofollow”>The data shows that bitcoin ETFs have lost assets for the past eight consecutive days, while Ether funds have lost more than $568 million since inception.

Additional data shows that futures open interest continued to fall and is at its lowest point in over a month. bitcoin open interest fell to $28.4 billion, down from the year-to-date high of over $37 billion.

bitcoin price has weak technical characteristics

bitcoin Death Cross?

Technically, there is a risk that bitcoin is on the verge of forming a death cross pattern as the spread between the 200-day and 50-day exponential moving averages is narrowing.

The last time bitcoin formed a death cross was in 2022. The event caused a 65% drop.

bitcoin has also moved below the 38.2% Fibonacci retracement point, meaning it could fall to the 50% level of $49,000, its lowest level last month. A drop below that point will lead to further declines. Other altcoins tend to crash when btc is not doing well.