Bitcoin Crashes 4.5% in Flash Sell-Off, Triggering Liquidations

On April 1st, Bitcoin's price plummeted over 4.5%, marking the first monthly decline after seven consecutive months of growth. The flash crash caused $319.43 million in liquidations, with longs accounting for $252.42 million. As the market sentiment remains cautious, BTC trades at $68,500, closely watched by traders monitoring support levels. Despite the decline, most market analysts believe Bitcoin will reach new all-time highs due to over $150 million in BTC bids placed below $69,000.

Bitcoin Plummets Over 4.5% in a Flash Crash, Liquidating Millions

On April 1, the cryptocurrency market experienced a significant downturn, with Bitcoin (BTC) plummeting over 4.5% to a local low of $68,000, marking an abrupt end to seven consecutive months of positive returns.

Massive Liquidations and Market Turmoil

The sudden decline triggered a surge in liquidations, totaling $319.43 million over the past 24 hours. The majority of these liquidations, amounting to $252.42 million, occurred in long positions.

The fallout from the price drop left a trail of trapped traders, with many caught off guard by the rapid decline. This occurred shortly after Bitcoin climbed to $71,500 over the weekend, securing the highest monthly closing price in its history.

Critical Support Levels and Market Sentiment

At the time of writing, BTC is trading at a crucial support level of $68,500. Market participants are closely monitoring this level, as a break below could trigger further declines.

CryptoSlate data reveals that most of the cryptocurrency market mirrored Bitcoin's downturn, with Ethereum (ETH) and Solana (SOL) experiencing substantial losses of 5.91% and 6.63%, respectively, over the past 24 hours.

Trading sentiment has turned cautious, with BTC/USD levels dipping to their lowest since March 25. Traders are advised to exercise caution and closely observe support levels.

Continued Sell Pressure and Path to the Halving

Persistent sell pressure could drive Bitcoin to retest $67,200 if it breaches the 200-period moving average on a four-hour timeframe.

Despite achieving a historic seventh consecutive green monthly close, analysts believe the journey to the upcoming Bitcoin Halving may not be entirely smooth. However, market sentiment suggests a widespread belief in the possibility of new all-time highs post-halving. This is evidenced by over $150 million in BTC bids placed below $69,000, indicating strong support despite the brief dip.

Bitcoin Market Data

As of press time, 7:07 pm UTC on April 1, 2024, Bitcoin holds the top position by market capitalization. The price has declined by 2.73% over the past 24 hours, with a market capitalization of $1.35 trillion and a 24-hour trading volume of $32.85 billion.

Crypto Market Summary

The total crypto market is valued at $2.58 trillion with a 24-hour volume of $101.28 billion as of 7:07 pm UTC on April 1, 2024. Bitcoin dominance currently stands at 52.31%.

About the Author

Assad Jafri, Editor & Reporter at CryptoSlate, is a seasoned journalist with over a decade of experience honed worldwide. Specializing in financial journalism, he now focuses on reporting on the cryptocurrency industry.