Assessing Bitcoin’s dip to $20,000 and altcoins’ reaction to it

• Bitcoin’s price has dropped to the $20,000 region for the first time in over five weeks.
• The dip in BTC’s price has caused over $300 million in crypto liquidations in the past 24 hours.

Thus far, Bitcoin [BTC] and the cryptocurrency market have had a rough March. The price of Bitcoin and other alternative coins has fallen significantly during the past 24 hours. The price drop of Bitcoin will be analyzed to determine how big of an effect it has had on these alternative cryptocurrencies.

Read Bitcoin [BTC] price Prediction 2023-24

It all started with Bitcoin

The price range tool on a 12-hour timeframe showed that Bitcoin (BTC) had lost over 11% of its value since its decline started on 6 March.

As of this writing, it was trading at around $20,000. Since beginning its ascent in January, the current price range is the lowest it has ever been.

Source: TradingView

In the same time frame, it was also possible to see that BTC had entered the oversold territory for the first time in more than three months. As of the time of this writing, the Relative Strength Index line was below 30.

The RSI line’s position suggested that the king coin had a strong bearish trend. The price may continue to fall, but a correction will eventually happen with the RSI line’s position.

Bitcoin price dip liquidates long positions

The whole cryptocurrency market was impacted by the decrease in the price of BTC over the past 24 hours.

According to data from Coinglass, the decline in the value of BTC and alternative coins has cost cryptocurrency traders approximately $320 million in liquidations.

Over $282 million of the trading positions liquidated in the past 24 hours were long, which bet on rising prices. Moreover, Bitcoin investors lost the most money in liquidations, followed by Ethereum investors.

Source: Coinglass

Global crypto market cap plummets

The global crypto market cap has also been falling due to BTC and alternative coin prices collapsing. It has declined from the $1 trillion level, according to data from CoinMarketCap.

A glance at the graph revealed a discernible fall on 8 March but one that was far more pronounced on 9 March. As of this writing, the market cap was $923 billion, down from $994 billion on 9 March.

Source: CoinMarketCap

As per CoinMarketCap,  Ethereum lost nearly 8% of its value during the past day. Over 10% of its value was wiped out in the past week. Furthermore, Solana (SOL) dropped over 8% in the last 24 hours and over 19% in the last seven days. A look at the altcoins on CoinMarketCap showed that they had taken a beating with BTC in the past 24 hours.

How did we get here?

The recent decline in Bitcoin and alts’ prices may have been caused by different factors. One possible contributor is the 8 March report that Silvergate Bank, a major U.S. bank servicing cryptocurrency businesses, had voluntarily liquidated. 

How much are 1,10,100 BTCs worth today?

A supplementary budget explanatory document released on 9 March also disclosed that crypto miners in the United States could be subject to a 30% tax on electricity prices under a Biden budget proposal that attempts to decrease mining activity.

More recently, news surfaced detailing how the U.S. Department of Justice transferred Bitcoin totaling nearly $1 billion, increasing concerns about the cryptocurrency’s value.