|
|
Due to the strengthening of the US dollar causing selling pressure, Bitcoin (BTC) reversed its gains from last week, resulting in the liquidation of over $400 million in long bets, with major tokens falling by 8% in the past 24 hours.
Data shows that Bitcoin dropped by 5%, while Ethereum (ETH), Cardano's ADA, and BNB Chain's BNB also experienced similar losses. Solana's SOL fell by 7% on Monday, to $185 after briefly touching $200, while Dogecoin (DOGE) dropped by over 8%. Bitcoin Cash (BCH), boosted by the April 4 halving event, rose by 40% over the past week but fell by 10% due to profit-taking.
The widely followed CoinDesk 20, which tracks the liquidity of major tokens excluding stablecoins, dropped slightly over 5%.
The amount of liquidation from long positions (or bets on price rises) exceeded $400 million, while the liquidation from short positions (or bets on declines) was relatively smaller at $85 million. Liquidation occurs when traders do not have enough funds to maintain leveraged positions.
Analysts at cryptocurrency exchange Bitfinex told CoinDesk in an email that some long-term investors sold their Bitcoin holdings over the past week, expecting Bitcoin to range-bound in the coming weeks.
"We expect Bitcoin to continue to range-bound as previously dormant supply, particularly from long-term holders (LTH), is being sold (though on a smaller scale compared to previous bull market tops)."
The analysts added, "Strategic profit-taking is observed within the LTH cohort (holding BTC for more than 155 days)."
On the other hand, Alex Kuptsikevich, Senior Market Analyst at FxPro, stated in a message that Bitcoin faces resistance at the $71,000 level due to cautious sentiment towards risk assets in the broader market.
"Bitcoin made its fourth attempt this week to consolidate above $71,000 but failed. Despite the S&P 500 closing at a new high, there has been some downside bias in the Nasdaq 100 index, indicating cautious sentiment towards risk assets." "Bitcoin has thus encountered strong resistance, with levels of $69,500 and $68,500 attracting increasing attention from us." |
|
Post time 13-4-2024 21:05:08