Bitcoin’s price experienced a significant drop of more than 7.1% in the past day, falling below the $65,000 mark for the first time since March 24.
Historically, the 14th week of the year has been one of the worst for Bitcoin’s price performance. According to data from Coinglass, BTC price typically falls an average of 8.33% during this week.
In the past 24 hours, Bitcoin’s price fell by over 6% and reached a daily low of $64,610 at 1:35 pm (UTC). However, trading volume for the cryptocurrency increased by more than 75% during the day to $46 billion, as reported by CoinMarketCap.
Crypto analyst Rekt Capital suggests that Bitcoin’s price momentum will continue to slow down as the Bitcoin halving approaches. In an April 2 X post, Rekt Capital argues that Bitcoin failed its post-breakout retest. Rekt Capital adds that Bitcoin’s price needs to be sustained above the $65,600 weekly range low to avoid further losses.
If Bitcoin’s price were to fall to the $65,000 mark, Coinglass data indicates that over $249 million worth of long leveraged positions would be liquidated across all exchanges.
Bitcoin’s recent correction has resulted in the resetting of multiple key metrics that previously suggested the price was overheated. The relative strength index (RSI), for example, fell to 48 on the daily timeframe, indicating that Bitcoin is no longer overbought, according to Tradingview.
Andrey Stoychev, the head of Prime Brokerage at Nexo, attributes Bitcoin’s price correction to newcomers who entered the market since the approval of the United States’ spot Bitcoin exchange-traded funds (ETFs) in the past two months.
Traders should keep an eye on the $64,000 mark, as there is over $17.21 million worth of Bitcoin futures liquidation leverage on Binance. Additionally, $9.92 million worth of BTC could be liquidated at the $63,500 mark, according to Coinglass data.
Over the past 24 hours, more than $152.5 million worth of leveraged Bitcoin positions were liquidated, with $109.11 million coming from long positions.
Bitcoin’s sudden drawdown caused over $165 million of leveraged crypto liquidations in less than two hours on Tuesday morning.
In contrast, the dormant Bitcoin supply has seen an increase in activity. Since December 2023, long-term holder (LTH) supply has declined by 900,000 BTC, with Grayscale accounting for a third, or 286,000 BTC, according to a report by Glassnode.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.