Bitcoin fell more than 10% over the past day trading at around $36.3K on the FTX exchange, causing the crypto market to be in a sea of red.Despite the crypto market losing nearly $200 billion in market value since yesterday, Crypto Twitter is not losing its collective mind as Bitcoin’s dominance is at 40.84%, up 0.65% from yesterday.Global investors seem to have entered the year with a reduced appetite for risk, and so the correlations between speculative assets like crypto-assets and equities have risen, which has resulted in widespread losses.The day’s liquidations amounted to about 221,382 investors. On Bitmex, the largest liquidation order was for XBTUSD worth $9.31 million.The S&P 500 Index has declined by about 7% since its peak, while the Nasdaq 100 Index has dropped by 10%. Bitcoin is down roughly 45% from its all-time high of almost $69K.Bitcoin’s risk profile was higher than those of altcoins, which led to their decline on Friday.Market cap-wise, Ethereum, the world’s second-largest cryptocurrency, dropped about 13% over the past 24 hours, while AVAX and FTM fell by 14% and 16%, respectively.Analysts still expect a short-term rebound despite the losses. It is expected that BTC will find a bid near the $35K mark, close to 50% from the top.The market can bounce to challenge the $40K-$45K area in the short term, but as long as liquidity remains tight, the outlook is bearishAs of now, technical indicators suggest that bitcoin’s nearby support level is $35K, although a stronger support level at $30K might stabilize a deeper correction.It is imperative that bitcoin holds its support as it sets the tone for the cryptocurrency market. Many altcoins are trading at their summertime 2021 lows, making Bitcoin crucial.
