Bitcoin in Trouble Following a Recent Retrace From $11,150

Bitcoin (BTC) is back in a bearish territory as about $12 billion has been shaved off the crypto market in the past 24 hours. Also, about $10 million worth of BitMEX BTC longs has been liquidated as a result of the decline.

Over the past 12 hours, Bitcoin slumped from the $10,900 area to a low of $10,290, smashing the 50 and 200 SMA in its way down. At press time, it is currently trading at $10,490.

The Altcoin market is also experiencing this weakness as traders flee to stablecoins and other safer assets. Reports show that this is the benchmark cryptocurrency’s fourth flash crash since the start of this month.

Meanwhile, this comes at the same time when the global equity markets are crashing, with Wall Street declining by about 2%.

Key BTC Levels to Watch

As projected in a previous analysis, a slight correction occurred once Bitcoin hit the $11,150 mark on Saturday. However, that projected slight decline has turned to a full-blown bearish retracement.

Bitcoin appears to still have room for some more decline given the global risk sentiment. Also, we are still yet to see the much-talked-about CME gap at $9,600 get filled. Currently, it is still unclear if the decline could take us to the CME gal level, however, such a possibility is not off the table.

It would be prudent to see how BTC reacts with the strong $10,200 support before placing any bets.

Meanwhile, the crypto remains under a downward-facing trendline, indicating that this depression could go on until it breaks above that line around $11,000.

Total market capital: $329 billion

Bitcoin market capital: $193 billion

Bitcoin dominance: 58.6%

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