The Bitcoin market has recently been under stress, with the cryptocurrency‘s price dipping to levels disappointing to investors, causing concerns about potential further drops. This market downturn is particularly impacting altcoins such as AVAX, which had only just begun to rally. AVAX opened the week at a vulnerable price point and is now at risk of further declines as Bitcoin continues its downward trajectory.
Market Turbulence Hits AVAX Hard
The last 24 hours saw a significant surge in cryptocurrency liquidations, totaling $580 million, with AVAX long positions losing $3.3 million. This sudden downturn has left investors questioning the stability of what seemed to be a promising breakout. Concurrently, the open positions in AVAX futures markets decreased by 25%, with the open interest falling to $427 million, signifying investor caution amidst volatile market conditions.
Uncertain Outlook for AVAX Amid Bitcoin’s Struggle
AVAX’s price trajectory could have been more optimistic had Bitcoin’s slump not cast a shadow over the market. Previous discussions had centered on potential targets at $78 and $100 for AVAX, goals that appeared within reach before the recent sell-off in the market. Now, with Bitcoin’s future looking uncertain, altcoins like AVAX may be bracing for a significant short-term correction.
AVAX’s price struggle is evident as it teeters on the brink of falling below the critical $50 mark, with potential fallbacks to $48 and $41. Should larger sell-offs occur, the price may retreat to the starting point of the previous rally, at around $31.5. With Bitcoin’s current market performance, investors would be wise to consider stop orders that might be activated with the loss of the $50-48 range. At the moment, Bitcoin’s trading price hovers around $64,880.
