On the night of April 2, the price of the leading cryptocurrency plummeted from $69,500 to $66,000, marking a 5% drop within 24 hours.
Bitcoin has dropped below $65,000 and is trading around $64,800 at the time of writing.
ETH also fell further to $3,250.
At the time of writing, Bitcoin is trading at $66,800. Its market capitalization stands at $1.31 trillion with a trading volume of $42 billion.
All assets in the top 10 are also in the “red zone.”
Ethereum (ETH) fell to $3,380, a 4.5% drop over the day. The asset’s market capitalization is approximately $406 billion.
According to Coinglass, the volume of liquidations in the futures market reached $395 million over the past 24 hours. The majority—$312 million—were long positions.
Causes and Consequences
Even before the sharp correction began, technical analyst Ali noted that a drop in ETH below the $3,400 support level could confirm the formation of a bearish pennant on the daily chart. This could potentially trigger a more significant decline, the expert noted.
In trading, you must always be prepared for the best and the worst!
The most brutal scenario for #Ethereum right now is breaching the $3,400 support level. Such a move could confirm a bear pennant formation on the daily chart, potentially triggering a major correction for $ETH… pic.twitter.com/LIXyuz8NlI
— Ali (@ali_charts) April 1, 2024
“Ethereum falling below $3,460 is a problem for bulls. Given the lack of support, this increases the chances of further correction to $2,850 or lower,” he added later.
Experts from QCP Asia noted an early signal from the options market indicating a sharp decline and a “risk reversal.”
“The speed of the movement was driven by large liquidations on exchanges like Binance, which have a significant number of retail traders, resulting in the perpetual futures funding rate dropping from 77% to a low,” researchers believe.
Following this correction, Bitcoin’s spot price returned to the middle of the $60,000-$72,000 range. According to QCP, despite the reduction in the futures market, the rest of the forward curve remains very high.
A trader known as Doctor Profit noted a gap in the liquidity pool on the Chicago Mercantile Exchange over the weekend that was not closed. He suggested a return to levels around $69,000.
#Bitcoin: Whoever watching the chart now should remember the Sunday report which clearly mentioned that CME gap + Liquidity pool is not out of the table
Whoever read the report can lean back and prepare his buy orders, those who are emotional will call for a bear market again pic.twitter.com/dTRjLd9NgL
— Doctor Profit ?? (@DrProfitCrypto) April 2, 2024
Previously, Morgan Creek CEO Mark Yusko predicted Bitcoin would rise to $150,000 by the end of the year. He believes the asset’s price movement post-halving will be “parabolic.”
The open interest volume for Bitcoin options expiring on March 29 reached a record high of $9.5 billion, noted Deribit.