Bitcoin’s sharp price correction invited $500 Million in liquidation

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The recent fresh greenish market turned red earlier today after a sharp price correction of Bitcoin. The majority of altcoins, in an obvious way, followed BTC’s path and went down by 7%-15% within an hour. 

BTC’s price fell by 6% to mark the weekly low at $58,000 and is currently approaching the $60,000 support level to find a position to sit strong. Ethereum (ETH), on the other hand, fell by 5%, taking prominent altcoins down. 

SHIBA INU is the only token among the top 20 coins that gained some profits today. The sudden market correction liquidated more than $500 million worth of crypto leveraged positions. The massive amount of liquidation resulted from a huge number of long positions as the market was highly saturated with the upward motion.

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Liquidation chart by bybt.com

Despite the amount of liquidation being much lesser than what we saw in the May-June crash, it broke the key support levels for major crypto tokens, including Bitcoin (BTC), Cardano (ADA), and Ripple (XRP).

Trader says Bitcoin can see a peak in mid 2022

Crypto trader and Twitter user TradersApprentice tweeted after the crash, suggesting that the community was already witnessing All-time Highs (ATH) for many tokens. Further paving the way for BTC to record an ATH in mid-2022. 

Many traders, including Lark Davis, said that November would bring more green to the plate and called the upcoming month “Moonvember.”

Is Asia Pacific Stock Market the reason behind the ongoing correction?

The biggest reason behind the crypto market correction is found to be the correction recorded on the Asia Pacific stock market. Many times, the stock market sentiments are carried forward to the crypto market. 

After a bearish September, October has been doing pretty good to the market, and the current correction seems to be the only major down movement this month. The Crypto market has regained its $2 trillion market cap after the arrival of “Uptober” bulls. Bitcoin has risen from $45,000 to the recent ATH at $67,000.

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