In the early hours of the US trading day, the cryptocurrency market experienced another unexpected selloff, resulting in over $30 million worth of trades being liquidated within an hour. The price of Bitcoin dipped from $63,340 down to a low of $61,600, representing a 6% decrease in value for the day.
The cost of Ethereum momentarily dipped under $3,000 due to numerous liquidation orders caused by pessimistic feelings prior to Bitcoin’s halving event. Simultaneously, other significant cryptocurrencies like Binance Coin, Solana, Ripple, Dogecoin, TON, Cardano, and Shiba Inu experienced a decrease of around 2-3% in value within an hour. The prices for Solana and Toncoin have plummeted by 14% and 15% respectively over the past day.
Why Bitcoin Price Fell Suddenly
Before Bitcoin underwent its halving event, a combination of broader economic and political influences caused its price to decrease. Notably, there was a lack of significant purchasing from wealthy investors and large-scale buyers during this time.
According to Coinglass data, over $330 million in cryptocurrencies were sold off during the recent market correction. Approximately $260 million worth of long positions were terminated, while around $70 million in short positions were liquidated on Tuesday.
Approximately 109,000 traders had their positions closed, resulting in the largest single liquidation order worth around $5.97 million, which was executed on the crypto exchange OKX when someone converted Ethereum to US Dollars.
The Bollinger Bands, represented by the blue lines, suggest that Bitcoin’s price is currently experiencing a downtrend as it has not been able to surpass the 20-simple moving average, which is depicted in orange. Meanwhile, based on the Ichimoku Cloud data, the price continues to dip below the support level, and there is an increasing selling pressure as the trend shifts. The cloud itself is expanding, signaling a stronger bearish trend.
CryptoQuant research head Julio Moreno shared his bearish view on Bitcoin along with expert Markus Thielen. According to Moreno, the growth in Bitcoin’s demand has noticeably decreased, particularly from Exchange-Traded Funds (ETFs) and long-term investors. The decline in demand was observed even before the upcoming halving event.
Analyst Predicts A Fall to $55K
According to well-known analyst Michael van de Poppe, Bitcoin’s price may reach around $55,000 as it currently rests on support following a rejection in lower timeframes. Despite this bearish sign, Van de Poppe anticipates that Bitcoin will maintain its position and initiate a gradual uptrend. The bearish divergence remains relevant as the consolidation phase for the post-halving rally progresses.
The global economic happenings led the US dollar index (DXY) to surpass 106.23, climbing even further. In contrast, the US 10-year Treasury yield reached a peak of 4.663% today. As Bitcoin tends to move in the opposite direction from both the DXY and the 10-year Treasury yield, their increase caused a sharp drop in Bitcoin’s price, pushing it below $62k and initiating a crypto market selloff.
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2024-04-16 14:57