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Major cryptocurrency took a hit on Tuesday evening, as Bitcoin encountered selling pressure leading as halving approaches.CryptocurrencyGains +/-Price (Recorded 12:00 a.m. EDT)Bitcoin BTC/USD -1.45%$66,053Ethereum ETH/USD -1.51%$3,318Dogecoin DOGE/USD -1.96%$0.18
What Happened: The leading cryptocurrency dropped 5.7% to $65,742, bringing an end to the week-long consolidation between $68,000 and $72,000.
Bitcoins upcoming halving event is expected on April 21, which will reduce the pace of BTC production by 50%.
Long liquidations, which occurred during a period of heightened volatility, particularly stood out. On April 2, long positions totaling over $115 million were liquidated within a 24-hour timeframe. Notably, Bitcoin long liquidations surged to over $21 million within just 4 hours on the same day.
When Bitcoin long positions are liquidated without sufficient buying pressure from traders, it can have a negative impact on the price of Bitcoin.
Top Gainer (24 Hour)CryptocurrencyGains +/-Price (Recorded 12:00 a.m. EDT)Ethena ENA/USD +25.86%$0.86Flare FLR/USD +10.67%$0.039Bitget Token BGB/USD +9.63%$1.18
The global cryptocurrency market cap now stands at $2.48 trillion, showing a 1.71% decrease in the past 24 hours.
Stock market declined on Tuesday. The S&P 500 dropped by 0.72% and closed at 5,205.81. Similarly, the Dow Jones Industrial Average decreased by 396.61 points, or 1%, settling at 39,170.24. The tech-heavy Nasdaq Composite declined by 0.95% and finished at 16,240.45.
Tuesdays market losses followed the release of Februarys core personal consumption expenditures price index, which showed a 2.8% annual increase, still below the Feds 2% inflation target. Additionally, the Institute for Supply Managements manufacturing gauge indicated expansion for the first time since September 2022.
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Analyst Notes:Cryptocurrency analyst Michael Van de Poppe has indicated that Bitcoin has lost a crucial area. He said, Well not see a new ATH pre-halving unless $69K breaks.
Van de Poppe expects a period of consolidation, during which altcoins will begin to show activity after this correction.When it comes to Bitcoin, he says, the area of interest lies in the range of $56-60K.
Analyst Rekt Capital suggested that the current price action is part of a pre-halving retracement. According to Rekt Capital, Bitcoin experienced a 38% and 20% dip during the halving cycles of 2016 and 2020, respectively.
Pseudonymous analyst Credible tells said on X X that Ethereum is poised to surge beyond $10,000, with a potential rally reaching as high as $20,000. His prediction is based on the anticipated gains in Bitcoin.
"I think there's a chance we can come up on a peak/blow-off top near $20,000. It's pretty simple I think BTC can realistically 2x from our last high at $69,000 which means most alts will do multiples of that. For ETH, a 3-4x of prior all-time high puts us at $15,000-$20,000."
Ali Martinez mentioned the strong support of the 200 EMA on the Bitcoin four-hour chart. This support has been crucial since early February, preventing BTC from further declines.
"For this reason, Im paying close attention to this level because if it holds, it guarantees a rebound, but if it breaks as it did in mid-January, it could lead to more losses for $BTC."
Photo by SvetlanaParnikova on Shutterstock
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