The crypto market dropped massively in the last 24 hours, with Bitcoin falling below $55,000.
Crypto liquidations were more than $600 million, with leveraged bulls taking the brunt of the losses.
Bitcoin might find support at $54,000 or could fall further to $50,500.
Ethereum must hold above $2,870 to avoid a drop towards $2,500.
Cream Finance shows potential for recovery, while Enzyme has remained unaffected by the market slump.
The crypto market has declined further over the last 24 hours, with Bitcoin now below the $55,000 zone and the crypto market down by another 9% in the previous 24 hours.
The crypto market’s heatmap
The crypto heatmap shows that Bitcoin alone is down by around 8%, and Ethereum has slid downwards by more than 10% in the last 24 hours, with the market almost entirely red.
As expected, the crypto market's liquidations have been especially brutal in the last 24 hours, with more than half a billion dollars lost to liquidations.
The crypto liquidation heatmap
The snapshot above shows that leveraged traders collectively lost around $678 million to liquidations in the last 24 hours, with the bulls carrying a staggering $587 million, compared to the bears' $90 million.
Considering all of the above, the crypto market is under bearish control at the time of this writing.
As shown above, Bitcoin eventually broke below the $56,000 price level sometime in the last 24 hours and is currently in the middle of a freefall as shown below:
Bitcoin’s price action
As shown above, a descending trendline can be drawn on Bitcoin's daily chart, indicating that the cryptocurrency might rebound from the $54,000 zone.
However, if the bulls lose control of things again at this price level, Bitcoin could continue declining and hit the $50,500 price level again.
In sum, traders should keep an eye out for what happens around $54,000 for signs of a rebound or a drop further down to $50,500.
As shown in the snapshot below, Ethereum lost its standing above the ascending trendline and has declined by more than 10% over the last 24 hours.
Ethereum’s price action
The charts show that Ethereum is now testing support around the $2,870 zone, which was last tested in May.
Ethereum is sitting at a critical juncture at this point and cannot afford to fall further.
If the bulls successfully push the cryptocurrency lower at this point, the resulting drop is devastating, leading the cryptocurrency further down towards the $2,500 zone.
According to the charts, while most of the other cryptocurrencies continue to struggle with the bearish influence over the last day, Cream Finance appears to have launched its own recovery as shown.
Cream Finance in the charts
The cryptocurrency has rebounded off the $40.3 price level and is now making its way upwards, with a 24-hour price increase of around 6%.
Can Cream Finance continue further down from here? Absolutely.
However, suppose this happens to be a valid recovery for cryptocurrency. In that case, traders might find a good entry opportunity from here, as indicated by the bullish crossover in the cryptocurrency's daily RSI.
As shown by the charts, Enzyme, for some reason, has been unaffected by the ongoing market decline:
Enzyme’s price action
Prior to the market slump between Thursday and Friday, the cryptocurrency had already launched its own recovery phase after crashing to the $15.81 price level.
As it stands, Enzyme is one of the only bullish cryptocurrencies on the market at present and should remain so long as the price doesn't break below $15.9.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.