Bitcoin and Altcoins Witness Significant Fall; Bulls Continue to Defend Crucial Support Levels
Summary:
Amid a steady range, Bitcoin experienced a drastic drop on April 12th and 13th, causing about $2.5 billion in cryptocurrency liquidations and impacting the short-term leveraged long positions. Despite the fall, the price has yet to break the crucial $60,000 support mark hinting at a standard bull phase pullback. Altcoins, including some of the top 20 cryptocurrencies, witnessed a roughly 20% fall due to Bitcoin's drop, subsequently increasing Bitcoin's market cap dominance to a three-year high. Meanwhile, Binance Coin, Toncoin, VeChain, and Bitget Token also saw significant price fluctuations and trends during this phase. Investors are advised to conduct their independent investigations as every investment or trade entails risks.
Bitcoin (BTC) experienced a significant decline on April 12th and 13th after maintaining a steady range for most of the week. The downturn caused approximately $2.5 billion in cryptocurrency liquidations, with a higher number of long versus short liquidations. Short-term leveraged long positions have been influenced drastically, as they had originally projected the rally to persist pre and post the Bitcoin halving.
Altcoins also took a direct hit due to Bitcoin's drop, with some of the top 20 cryptocurrencies witnessing nearly a 20% fall by market capitalisation. Consequently, the Bitcoin market cap dominance rose to a three-year high at 56.3% on April 12th. However, amongst the unsettling news for short-term traders, the silver lining is that the price has yet to break the vital $60,000 support mark, suggesting that the drop is a typical bull phase pullback. While traders should remain careful, there doesn't seem to be any cause for alarm.
The critical support levels for Bitcoin that require sustenance for a relief rally to start are being analysed. The top 5 cryptocurrencies that potentially show strength on the charts and could spearhead the recovery process are also under review.
Bitcoin's price has seen fluctuations but remained stable between $60,775 and $73,777 for several days. This pattern indicates ambiguity about the next major move. The BTC/USDT pair dipped under the 50-day simple moving average ($66,743) on April 13th and plunged beneath the $60,775 support. The substantial tail on the candlestick, however, reveals that the bulls are safeguarding the $60,775 level.
Binance Coin’s (BNB) price actions during the last few days have formed a wide range, suggesting a standoff between bulls and bears. The crucial downside support to monitor is $495 and then $460, as a fall below this point could indicate the beginning of a downtrend towards $400.
Toncoin (TON) has been showing an upward trend inside an ascending channel pattern, suggesting a bullish viewpoint where investors continue buying on dips. The scenario may however change if the TON/USDT pair turns sharply downward and closes below the support line, leading to a possible drop to the 50-day SMA ($4.28).
VeChain’s (VET) has been confined within a large range between $0.036 and $0.051, pointing towards equilibrium between supply and demand. A downturn and subsequent break below $0.035 would suggest that the bears are gaining control, starting a potential downtrend towards major support at $0.025.
Bitget Token (BGB) has seen a drawback in a resilient upward trend, pointing towards profit-taking actions by short-term traders. If market situations cause the price to dip below $1.11, the next likely stop stands at $1, negating this prediction if the price rises and breaks above the 20-EMA, leading to a possible rally to $1.28 and then $1.35.
There is always a risk associated with every investment and trade move. Thus, readers should independently investigate and verify any information before making a decision.
Published At
4/14/2024 9:32:26 PM
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