Crypto Market Plunges with Bitcoin Crash, Liquidating Billions

Bitcoin (BTC) plummeted on April 12 and 13, triggering $2.5 billion in liquidations as long-position traders were caught off guard. Despite the downturn, Bitcoin remains above a crucial support level, indicating a potential short-term pullback rather than a bearish trend reversal. Other altcoins have taken a hit, with some in the top 20 losing up to 20% in value. Despite the volatility, positive signs emerge, with support levels holding and some cryptocurrencies showing strength on the charts. Binance Coin (BNB), Toncoin (TON), VeChain (VET), and Bitget Token (BGB) have the potential to lead a recovery, while Bitcoin remains range-bound and faces resistance at the 20-day exponential moving average.

Cryptocurrency Market Faces Sharp Plunge as Bitcoin Prices Plummet, Liquidating Billions

The cryptocurrency market has been shaken by a significant downturn, led by a sharp decline in Bitcoin prices on April 12 and 13. This sudden drop resulted in an estimated $2.5 billion in cryptocurrency liquidations, with a notable concentration in long liquidations compared to short liquidations. This fall deals a significant blow to short-term, leveraged long positions that anticipated a continued rally leading up to and following the Bitcoin halving event.

The impact of Bitcoin's decline has heavily affected the altcoin market, with some of the top 20 cryptocurrencies by market capitalization experiencing declines of approximately 20%. This development has pushed Bitcoin's market cap dominance to 56.3% on April 12, its highest level in three years, as reported by Cointelegraph.

Despite the market turmoil caused by Bitcoin's plunge, there are signs that the price has not yet breached the crucial support level of $60,000. This suggests that the downturn may be a normal pullback within a broader bull market phase. While traders are advised to maintain caution, there appears to be no cause for excessive panic.

To gauge the potential for a relief rally, it is essential to identify the key support levels on Bitcoin that must hold. Additionally, examining the performance of other major cryptocurrencies can provide insights into which may lead the market recovery.

Bitcoin Price Analysis

Bitcoin has been characterized by volatility within a trading range between $60,775 and $73,777 for an extended period, indicating indecision regarding its next directional move. On April 13, the BTCUSDT pair dipped below the 50-day simple moving average ($66,743) and subsequently fell beneath the $60,775 support level. However, the long tail on the candlestick formation suggests that bulls are defending this critical level.

Any attempt at recovery is likely to encounter resistance at the 20-day exponential moving average ($67,807). If prices reverse from this resistance, bears will once again attempt to drive the pair below $60,775. Conversely, a breakout above the 20-day EMA would pave the way for a rally towards $73,777.

The downward-sloping 20-day EMA and the negative relative strength index (RSI) indicate that bears are in control. The relief rally is likely to face resistance at the 20-day EMA. A price reversal from this point will give bears another opportunity to test the $60,775 support. If this level breaks, the pair may initiate a downtrend towards the 61.8% Fibonacci retracement level of $54,298.

On the other hand, a rise above the 20-day EMA would be the first indication that the pair may continue to oscillate between $60,775 and $73,777 for a further period. Bulls will need to push prices above $73,777 to signal the commencement of the next leg of the uptrend towards $80,000 and then $84,000.

Binance Coin Price Analysis

The price action of Binance Coin (BNB) over the past few days has formed a wide range, indicating indecision between buyers and sellers. On April 13, the price approached the range support at $495, but the long tail on the candlestick formation demonstrates aggressive buying at lower levels. Bulls will attempt to sustain this momentum and propel the BNBUSDT pair towards the overhead resistance of $635, where sellers are likely to defend this level fiercely.

The critical support to monitor on the downside is $495, followed by $460. Buyers are anticipated to vigorously defend this support zone because a breakdown below it could trigger a downtrend towards $400.

The 4-hour chart reveals that bears have dragged the price below the uptrend line of the developing ascending triangle pattern, invalidating the bullish setup and presenting a negative signal. The price retreated to $508 but swiftly rebounded, indicating solid buying at lower levels. The recovery is likely to face resistance at the uptrend line.

If the price reverses sharply from the uptrend line, it will suggest that bears have flipped this level into resistance, potentially leading to a decline towards $495. In contrast, a rise above the uptrend line would open the door for a potential rally to $600 and then $635.

Toncoin Price Analysis

Toncoin (TON) has been trending within an ascending channel pattern, indicating that buyers continue to purchase on dips. Bears pulled the price below the channel on April 12 and 13, but the long tails on the candlesticks demonstrate strong buying near the support line. The inability to maintain lower levels may have attracted buyers, who are attempting to drive the price towards the resistance line around $7.50.

Both moving averages are ascending, and the RSI is in positive territory, suggesting that buyers retain the advantage. This optimistic outlook will be negated if the TONUSDT pair reverses sharply and closes below the support line, potentially triggering a decline towards the 50-day SMA ($4.28).

The recovery on the 4-hour chart may encounter resistance at the 20-day EMA and again at the downtrend line. If the price reverses from this overhead resistance and breaks below $5.71, the pair may plunge towards $5. Conversely, if the bulls lift the price above the downtrend line, it will indicate that the correction may be over, and the pair could attempt a rally towards the substantial overhead resistance at $7.67.

VeChain Price Analysis

VeChain (VET) has been consolidating within a wide range between $0.036 and $0.051 for several days, indicating a balance between supply and demand. Traders often buy the dip to the range support and sell near the overhead resistance. The long tail on the April 13 candlestick suggests that the bulls are attempting to defend the $0.036 support. If the price continues higher and breaches the moving averages, it will signal that the range-bound action may persist for a few more days.

Conversely, if the VETUSDT pair turns down sharply and breaks below $0.035, it will indicate that the bears are attempting to seize control, potentially initiating a downtrend towards the significant support at $0.025.

The 20-day EMA is descending, and the RSI is in negative territory, indicating an advantage for sellers. If the price reverses from the current level or the 20-day EMA, the bears will make another attempt to drive the pair below the $0.036 support. Success in this endeavor may initiate a new downtrend.

On the other hand, if the price rises above the 20-day EMA, it will signal strong buying at lower levels, and the pair may remain range-bound between $0.036 and $0.051 for a while longer.

Bitget Token Price Analysis

Bitget Token (BGB) has experienced a pullback within a strong uptrend, indicating profit-taking by short-term traders.

Bears dragged the price below the 20-day EMA ($1.17) on April 13, but they are facing resistance in driving the BGB/USDT pair down to the 50-day SMA ($1.02). This suggests that bulls continue to buy the dips.