Bitcoin Suffers Massive Decline Amid Mass-Liquidation of Buy Positions

Bitcoin Suffers Massive Decline Amid Mass-Liquidation of Buy Positions

Bitcoin (BTC) traded through the week on very bullish momentum, as the benchmark cryptocurrency printed new record highs. However, traders woke up to a shocker on Sunday morning with over one million long positions liquidated, as BTC plunged by more than 16%.

Weekends are usually less volatile as traders take a break away from the market. However, the Asian session saw a significant price move in what is regarded as the largest liquidation since February.

While the selloff cannot be tied to a particular factor, there exist several possible triggers behind the crypto market slump.

Firstly, speculations that the US Treasury could charge several financial institutions for money laundering through the use of cryptocurrencies rocked the market yesterday. While the news has no official backing or source, it has gained massive traction on Twitter and other news media and has a hand in the recent selloff.

Another possible trigger for the crypto market crash is the recent plunge in the BTC mining hashrate. On-chain analyst Will Woo noted that the power outage in Xinjiang was the reason for the price drop in the benchmark cryptocurrency.

Woo cited that the hashrate plunge is similar to the one that occurred in November 2017. The analysts further explained that BTC price and hashrate have a strong correlation, which explains the flash crash seen on Sunday.

Key BTC Levels to Watch — April 18
Bitcoin recorded a massive rejection from the $61k resistance as investors cashed out on profits. The primary cryptocurrency has fallen back into the $50k’s and could remain below the $60k line for a while.

BTCUSD – Hourly Chart

The immediate task for bulls is to get BTC into the $58k pivot zone, where we could see a return of some bullish traction. That said, our hourly MACD shows that Bitcoin should post a steady rebound over the hours, as it is deep within oversold territory.

Meanwhile, our resistance levels are at $56,000, $56,700, and $57,500, and our key support levels are at $55,000, $54,000, and $53,000.

Total Market Capitalization: $1.99 trillion

Bitcoin Market Capitalization: $1.03 trillion

Bitcoin Dominance: 51.8%

Market Rank: #1

 

You can purchase crypto coins here: Buy Coins

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
Share with other traders!

Author : Azeez Mustapha

Avatar

Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.