Benzinga - by Mehab Qureshi, Benzinga Staff Writer.
Major cryptocurrency took a hit on Tuesday evening, as Bitcoin encountered selling pressure leading as halving approaches.
| Cryptocurrency | Gains +/- | Price (Recorded 12:00 a.m. EDT) |
| Bitcoin (CRYPTO: BTC) | -1.45% | $66,053 |
| Ethereum (CRYPTO: ETH) | -1.51% | $3,318 |
| Dogecoin (CRYPTO: DOGE) | -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.
Bitcoin’s 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)
| Cryptocurrency | Gains +/- | Price (Recorded 12:00 a.m. EDT) |
| Ethena (CRYPTO: ENA) | +25.86% | $0.86 |
| Flare (CRYPTO: FLR) | +10.67% | $0.039 |
| Bitget Token (CRYPTO: BGB) | +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.
Tuesday’s market losses followed the release of February’s core personal consumption expenditures price index, which showed a 2.8% annual increase, still below the Fed’s 2% inflation target. Additionally, the Institute for Supply Management’s 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, “We’ll 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.
Crucial area lost for #Bitcoin.We'll not see a new ATH pre-halving unless $69K breaks.
What I do expect is a period of consolidation, through which altcoins will wake up after the end of this correction.
Area of interest for Bitcoin?
$56-60K. pic.twitter.com/CRIYtWSeY8
— Michaël van de Poppe (@CryptoMichNL) April 2, 2024
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."
$10,000+ minimum. I think theres a chance we can come up on a peak/blow off top near 20k.It's pretty simple- I think $BTC can realistically 2x from our last high at 69k- which means most alts will do multiples of that.
For $ETH, a 3-4x of prior ATH puts us at 15-20k. https://t.co/LfH6WyNtFY
— CrediBULL Crypto (@CredibleCrypto) March 31, 2024
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, I’m 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."
The 200EMA on the #Bitcoin four-hour chart has been formidable support. Since early February, it has prevented #BTC from dropping further.For this reason, I'm paying close attention to this level because if it holds, it guarantees a rebound, but if it breaks as it did in… pic.twitter.com/cnfruT9wUJ
— Ali (@ali_charts) April 2, 2024
Photo by SvetlanaParnikova on Shutterstock
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