Massive Sell-Off: Bybit Hack and Overleveraged Positions Amplify Crypto Market Downturn

The cryptocurrency market experienced sharp fluctuations over the past 24 hours, with Bitcoin (BTC) stabilizing near $92,000 while altcoins like Ethereum (ETH), Solana (SOL), and XRP faced significant challenges.

The global crypto market cap dropped 3.6% to $2.99 trillion, reflecting bearish sentiment fueled by macroeconomic uncertainty, technical breakdowns, and market-specific events.

Bitcoin traded at $95,818 early on February 24 before dipping to test support near $93,205. Analysts observed the formation of a “Triangle” pattern, suggesting potential further downside to $88,405 if support breaks.

However, a rebound above $103,605 would confirm bullish momentum with a target of $107,805. Bitcoin’s RSI dropped to oversold levels of 30 during the day, historically signaling recovery potential.

Trading volumes spiked to 12.5 million BTC, indicating heightened market activity as investors reacted to shifting sentiment. Ethereum struggled below $2,500 after testing resistance near $2,775.

Technical indicators showed bearish signals, including a rejection at the upper boundary of its “Triangle” pattern and a potential fall toward $2,075 if support at $2,565 fails. The Bybit hack, which drained $1.5 billion in ETH, added selling pressure.

Crypto Market Update

However, ETH’s MACD displayed a bullish crossover late in the session, hinting at possible short-term recovery. Solana faced the steepest decline among major assets, plunging 14% to $140 after breaching its 50-day moving average at $145.

Analysts highlighted key support at $127 but warned of further downside if this level fails. Solana’s RSI fell from an overbought 85 to an oversold 30 within hours, while trading volume on decentralized exchanges like Raydium surged 300%, reflecting panic selling ahead of a $1.77 billion token unlock.

XRP consolidated near $2.60 but remains vulnerable after an 11% drop over the past week. Resistance at $2.85 remains critical for bullish momentum toward $3.00; failure to break this level could lead to further declines toward $2.33.

Market-wide ETF outflows totaled $1.1 billion in February as institutional interest waned amid macroeconomic concerns and regulatory uncertainty. Analysts remain cautious about altcoins as liquidity shifts back into Bitcoin due to its relative stability.

While Bitcoin shows resilience with strong on-chain metrics and technical support levels holding firm, altcoins face mounting pressure from bearish technicals and external events. Investors are advised to monitor key resistance and support levels closely as volatility persists across the market.

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