Bitcoin’s recent rejection at the $64,000 mark has sparked discussions about the underlying dynamics within the cryptocurrency market. While Bitcoin has demonstrated significant upward momentum, several factors may have contributed to this rejection. One key factor is the rapid ascent of BTC to $64,000, leading to an overbought market condition. Investors have expressed concerns about the sustainability of such high prices without experiencing substantial corrections to balance the market.
Bitcoin rejection at $64K has consequences
BTC’s recent frenzy, which began in March, has intensified on Thursday, positioning it for its most significant monthly increase in almost three years. The surge is fueled by a flood of capital into listed bitcoin funds, with the crypto on the brink of setting a new record high.
Bitcoin, the world’s largest cryptocurrency, has seen relentless price growth, reaching $64,000. Currently, it sits just around 10% away from its all-time high, sparking anticipation among investors eager to capitalize on potential price gains.
Investors are rushing to buy cryptocurrencies out of a “fear of missing out” on future price increases, reminiscent of the crypto bull market of November 2021 when BTC hit a record high of around $69,000. BTC’s value has more than quadrupled since the beginning of the year, rebounding from a 64% decline in 2022, marking an impressive recovery following controversies and doubts about digital asset sustainability.
Amidst the rapid price fluctuations, both bulls and bears have been caught off guard. With the halving event approaching in April, where token production rates and miner rewards are halved every four years, more traders are investing in BTC.
In the midst of this volatility, crypto traders have witnessed significant liquidations totaling $638 million in the last twenty-four hours, with $391 million occurring within the last four hours. Coinglass reports that approximately $55 million in liquidations in the last hour affected lesser-known altcoins, while $96 million was liquidated directly in BTC transactions.
In the interim, liquidations cost ETH traders $45 million and DOGE traders $29 million.
During the last twenty-four hours, 168,988 traders were liquidated in total. The largest single liquidation, $9.45 million, occurred on OKX during a BTC-USDT transaction.
Bitcoin’s market performance
As of the latest update, the current value of Bitcoin (BTC) stands at $61,300.59, marking a 1.9% decrease since yesterday but showing a 0.6% increase from just an hour ago. Over the past seven days, Bitcoin has gained 20.0% in value compared to its price a week ago.
The total value of cryptocurrencies in the global market is currently $2.39 trillion, indicating a slight decline of -0.09% over the last twenty-four hours, yet a significant surge of 111.5% over the past year. Bitcoin (BTC) maintains its dominance with a market capitalization of $1.2 trillion, representing 50.34% of the total crypto market. Meanwhile, stablecoins hold a market capitalization of $143 billion, accounting for 5.99% of the total.
CoinGlass data highlights a series of liquidations across all digital assets within the past twenty-four hours due to the abrupt decline in prices, wiping out leveraged derivatives trading positions. Liquidations occur when exchanges close leveraged trading positions because traders fail to meet margin requirements or lack sufficient funds to maintain the trade open.
Wednesday and Thursday witnessed significant losses, possibly the most substantial since August last year when Bitcoin’s sharp decline to $25,000 led to $1 billion worth of derivatives positions being destroyed across all cryptocurrencies. Both short and long positions were affected by these liquidations amidst the surge and subsequent decline in crypto prices.
Crypto analyst Ali Martinez suggests that Bitcoin faces no significant resistance in the near future but finds strong support levels between $54,300 and $56,200. This support range, backed by robust purchasing activity with nearly 500,000 BTC held by 903,540 addresses, indicates considerable investor confidence.
Interestingly, the market decline coincides with a $1 billion Bitcoin transfer by the United States government, suggesting potential selling pressure from governmental entities. However, this amount represents less than 0.01% of Bitcoin’s total market capitalization.
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