The crypto market is in a massive crash, with a 15% decline in the total market cap.
Bitcoin and Ethereum are leading the decline, with both assets facing breaks below important support levels.
The broader crypto market is also under pressure, with Solana and Litecoin testing key support zones.
Liquidations have reached $1 billion, with Bitcoin and Ethereum bulls suffering the worst of it.
The market is extremely bearish, and investors are advised to approach cautiously.
The crypto market is currently experiencing the mother of all crashes, with a 15% decline in the total market cap.
Bitcoin is trading at around $49,000 and is crashing lower, with Ethereum now sitting at the $2,100 zone.
On the other hand, Solana is trading a few dollars above $100, and others like Litecoin are backtesting the $50 zone.
As shown by the crypto heatmap, the market has turned blood red, with stablecoins like USDT and USDC being the only greens.
The crypto market's heatmap
In terms of liquidations, the market has seen a staggering $1 billion wiped from the balances of leveraged traders, with the Bitcoin and Ethereum bulls suffering the worst of it.
The crypto market’s liquidations
As shown in the snapshot above, the bulls have lost around $891 million, while the bears have lost around $130 million.
Without need for mention, the market is extremely bearish at this time, with the bears completely in control.
The chart below is pretty self-explanatory: Bitcoin is currently in a freefall.
Bitcoin’s price action
The cryptocurrency has now hit the lower trendline of the descending channel above, and the bears are attempting to sink it further below.
That said, the important part of Bitcoin's price action at this point is its daily candle close.
Investors should consider staying away from the market for now and instead watch out for how Bitcoin closes.
With a daily candlestick, Bitcoin must close above the $50,850 price level today to confirm that recovery is inbound.
Ethereum is now below most of its moving averages and trading underneath its long-term ascending trendline and $2,800 support.
Ethereum in a decline
This decline has brought the cryptocurrency to a retest of the $2,200 price level, with an ongoing break below.
As with Bitcoin, Ethereum must stay above this resistance point and prevent a daily candle from closing below it to keep its hopes of a rally alive.
According to the charts, Chainlink lost its standing around the $12 zone and is now back at testing the $8.22 support.
Chainlink’s price action
As shown, the cryptocurrency's maintenance of this price level is extremely crucial, and a break below would spell a further decline to $5.72.
On the flip side, if Chainlink manages to maintain its position between the $12 - $10 price level, it might present a stellar entry opportunity for investors looking to enter the market.
Another crypto candle close to watch out for is Optimism.
The cryptocurrency has declined along with the rest of the market and is now testing its crucial $1.122 price level.
Optimism’s price action
The bears have successfully managed to push the cryptocurrency down below this price point, but the bullish outlook might not be over yet.
If we see the bulls manage to push back against the bears and prevent a daily candle close below $1.122, Optimism just might stand a chance at recovery.
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.