Cryptocurrency markets are trading lower as overshooting producer price inflation stopped the altcoin rally.

Notable Statistics:

• IntoTheBlock data shows Bitcoin and Ethereum large transaction increased by 4% and grew 18.7%, respectively in a single day. Daily active addresses grew 0.2% and 1.2%, respectively.
• Coinglass data shows 220,452 traders were liquidated in the past 24 hours for $1.05 billion.   
• The top losers in the past 24 hours include Pudgy Penguins PENGU/USD, SPX6900 SPX/USD and Virtuals Protocol VIRTUAL/USD.

Notable Developments:

• $420 Million Wiped Out In 20 Minutes — What The Inflation Shock Reveals About Bitcoin, Ethereum
• EASE Protocol Rolls Out Government And Enterprise-Grade Blockchain Tools For Real-World Applications
• Bullish (BLSH) Makes Explosive Market Debut, Stock Soars Post-IPO
• Trump Sons Back $1.5B World Liberty Financial Token Deal

Trader Notes: Crypto trader Jelle says Bitcoin is closing in on a full gap fill, calling the drop normal market behavior rather than a reason to panic.

He advises reducing leverage, stepping away from the charts, and expecting stabilization soon.

Glassnode data shows Bitcoin's at-the-money implied volatility is sitting at multi-year lows across all timeframes, a signal that traders may be underestimating risk. Historically, such conditions often precede sharp price moves ahead of "major market shifts."

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More Crypto Online points out that Bitcoin's lower Fibonacci support aligns with the CME gap, making it a prime candidate for a potential cycle low to preserve the bullish "white" scenario.

A break below this area would put the next support at $114,740 and flip the outlook to the "yellow" scenario.

Titan of Crypto notes Bitcoin has reached its long-term trendline, a major technical level. While the weekly RSI still suggests room for upside, he stresses the importance of monitoring this point closely.

Nebraskangooner observes Bitcoin's price structure closely tracking the 2021 topping pattern, with the same Fibonacci resistance in play and a "sell approaching" signal at nearly the identical stage.

Read Next: 

• Bitcoin, Ethereum Tumble After Inflation Surprise

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