Key Points
- Bitcoin’s price dropped over 7.1% in a day, falling below $65,000 for the first time since March 24.
- Over $249 million worth of long leveraged positions could be liquidated if Bitcoin’s price dropped to $65,000.
Bitcoin’s (BTC) price experienced a significant drop of over 7.1% within a day, marking its first dip below the $65,000 level since the 24th of March.
Historically, the 14th week of the year has been one of the worst for Bitcoin’s price performance. On average, Bitcoin’s price has fallen by 8.33% during this week, according to available data.
Bitcoin’s Price Performance
The price of Bitcoin fell by over 6% in the last 24 hours, hitting a daily low of $64,610 at 1:35 pm (UTC). Meanwhile, the trading volume for Bitcoin, the world’s largest cryptocurrency, increased by over 75% during the day, reaching $46 billion.
Crypto analyst Rekt Capital argues that Bitcoin’s price momentum is likely to continue slowing down as the Bitcoin halving approaches. Bitcoin’s price needs to remain above the $65,600 weekly range low to prevent further losses, according to Rekt Capital.
If Bitcoin’s price were to fall to the $65,000 mark, over $249 million worth of long leveraged positions could be liquidated across all exchanges.
Bitcoin’s Market Correction
Following the recent correction, Bitcoin has reset several key metrics that previously indicated the price was overheated. This includes the relative strength index (RSI), which dropped to 48 on the daily timeframe, suggesting that Bitcoin is no longer overbought.
The price correction can be primarily attributed to newcomers who entered the Bitcoin market in the past two months since the approval of the United States’ spot Bitcoin exchange-traded funds (ETFs).
Andrey Stoychev, the head of Prime Brokerage at Nexo, believes that a short-term correction is expected due to new latecomers wanting to invest in Bitcoin. He noted that Bitcoin bull markets have come with returns, as three out of the first four cycles have surpassed previous highs.
Traders should be watching the $64,000 mark, with over $17.21 million worth of Bitcoin futures liquidation leverage on Binance, the world’s largest exchange. An additional $9.92 million worth of BTC could be liquidated at the $63,500 mark.
In the past 24 hours, over $152.5 million worth of leveraged Bitcoin positions were liquidated, with $109.11 million worth of long positions. Bitcoin’s sudden drawdown caused over $165 million of leveraged crypto liquidations in less than two hours, early morning on Tuesday.
The dormant Bitcoin supply has also reawakened. The long-term holder (LTH) supply declined by 900,000 BTC since the peak of 14.91 million BTC in December 2023, with Grayscale accounting for a third, or 286,000 BTC.
