Bitcoin fell more than 4.5% to a local low of $68,000 on April 1, marking a red start to the month after seven consecutive monthly closes in the green.
The sudden crash resulted in $319.43 million in liquidations in the last 24 hours – with longs making up the vast majority at $252.42 million.
While there has been some recovery in the past hour, the immediate fallout has pushed a staggering number of traders into recession. The drop comes after the flagship crypto climbed to $71,500 this weekend, closing a monthly candle at the highest price in history.
BTC was trading at a critical support level of $68,500 at the time of writing, based on data from CryptoSlate.
Most of the crypto market reflected the crash, with Ethereum and Solana falling 5.91% and 6.63% over the past 24 hours.
ETH was trading at $3434, while SOL was trading at $189 at the time of writing.
Market sentiment
Trading sentiment remains cautious as BTC/USD levels have fallen to the lowest since March 25, prompting traders to keep a close eye on support levels.
Continued selling pressure could see Bitcoin retest $67,200 if it falls below the 200-period moving average over the four-hour time frame.
Despite achieving a historic seventh consecutive green monthly close, there is consensus that the path to the halving may not be a simple upward trajectory.
However, market sentiment indicates a strong belief in reaching new all-time highs after the halving, evidenced by bids of over $150 million worth of BTC being lowered to $62,000 after a brief dip below $69,000.
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