- Bitcoin was trading 16% below the ATH recorded in March.
- Further downsides could be potentially dangerous for the broader market.
Bitcoin [BTC] fell below $60,000 during U.S. trading hours on Tuesday, triggering a string of losses in what was one of the worst months for the cryptocurrency market in recent memory.
Bloody April
The world’s largest digital asset fell nearly 5% in a 24-hour period, data shows CoinMarketCap showed. It ended April with a monthly discount of 14.5%.
At the time of writing, the price was hovering above $58,000, down 16% from the all-time high (ATH) recorded in March.
The slump rippled across the market, causing other currencies to trade in the red.
More than $36 million worth of positions have been liquidated in the past 24 hours, with longs making up 85% of the total, AMBCrypto noted using Coinglass data.
Approximately $107 million in Bitcoin liquidations were observed in the 24-hour period.
Source: Coinglass
What causes negativity?
The sell-off followed the lackluster debut of Hong Kong’s newly listed spot ETFs. They raised about $11 million trading volume on the first day, according to data from the Hong Kong Stock Exchange.
This was a fraction of what the US-based spot ETFs achieved when they debuted in January.
US spot ETFs weren’t exactly having a great time either, seeing net outflows of $161 million on Tuesday, the fifth straight day of outflows, AMBCrypto researched using SoSo value facts.
Moreover, it is expected that the US Federal Reserve will keep interest rates stable in the near future F.O.M.C The rally in light of better-than-expected inflation data also prompted traders to shift their capital from riskier investments.
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What can you expect next?
Shivam Thakral, CEO of Indian cryptocurrency exchange BuyUcoin, spoke about the significance of Bitcoin’s current price levels in a statement shared with AMBCrypto.
“Bitcoin was retesting the crucial support zone of $58,000-$60,000. This zone is of great importance for the short-term prospects of altcoins. If it is lost, altcoins could potentially suffer even more downsides.”
Rising FUD could help create a local bottom. As we respond to the crypto market greedy According to popular technical analyst Ali Martinez, more fear was needed for a sustainable recovery.