The crypto market is undergoing a brutal correction. In less than 24 hours, more than $700 million worth of positions have been liquidated across major digital assets, while the total market capitalization has shed over $100 billion.
Bitcoin has broken below a major technical threshold, altcoins are collapsing in a cascade, and selling pressure shows no signs of letting up. Here is what the data reveals about the true scale of this move.
A warning signal traders cannot afford to ignore: the 200-WMA has just given way.
Bitcoin Loses Key Support: The 200-WMA at $62,000 Breaks Under Pressure
Bitcoin has broken below the 200-week moving average (200-WMA), currently sitting around $62,000. This level is historically regarded as the ultimate floor of bull market cycles — its breach represents a first-order bearish signal for on-chain analysts and technical traders alike.
This breakdown is occurring against a backdrop of heavy selling volume, with CoinGlass data confirming massive liquidations on long positions. The futures market absorbed the brunt of the shock: leveraged traders were swept out by a wave of cascading stop-losses, mechanically amplifying the price decline.
On TradingView, BTC price action is displaying a deteriorating market structure: successive highs and lows are now printing lower, signaling a short-term trend reversal. The $58,000 to $60,000 zone represents the next significant structural support to watch.
Altcoins in Freefall: ETH, XRP, SOL, HYPE and DOGE Caught in the Storm
The contagion is spreading across the entire market. Ethereum, XRP, Solana, Hyperliquid (HYPE) and Dogecoin are among the assets hit hardest by liquidations over the past 24 hours. The high correlation between Bitcoin and altcoins during periods of stress amplifies losses across the portfolios of exposed investors.
Aggregated liquidation data on CoinGlass shows that the majority of force-closed positions were longs opened during the most recent rally. This phenomenon, a classic feature of market reversals, reflects an excess of leverage built up during the preceding bullish phase — an imbalance the market is now correcting violently.
Lower-profile assets such as ZEC (Zcash) and SPCX have also seen notable liquidations, a sign that selling pressure is not confined to crypto blue chips. In this type of market configuration, market sentiment shifts rapidly toward extreme fear, as reflected in the deterioration of the Fear & Greed Index.
What On-Chain Data Says About the Next Move
Beyond the liquidations, on-chain metrics deserve close attention. Bitcoin losing the 200-WMA is no trivial event: historically, this level has served as an entry point for long-term holders (LTH). A weekly close below this threshold would significantly alter the macro outlook for the months ahead.
Exchange inflows have increased over the past few hours according to CryptoQuant data, indicating potential additional selling pressure in the near term. Until this flow reverses, the probability of a sustained recovery remains limited.
The real question for traders now is this: is this a healthy correction within a still-intact bull cycle, or a major trend reversal? The answer will largely depend on Bitcoin’s ability to quickly reclaim the $62,000 zone and on how buying volume responds at the key support levels identified ahead.
