A significant price fall across the cryptocurrency landscape has been observed, resulting in a massive liquidation in the last 24 hours. According to data from the on-chain analytic firm Coinglass, Bitcoin, Ethereum, Solana, and others experienced a significant price drop, leading to a total market liquidation of $936.49 million.
Why Crypto market experiencing downside momentum?
In addition to this massive liquidation, the single largest occurred on the OKX cryptocurrency exchange in the ETH-USD pair, with a value of $7.19 million. However, the primary reason behind this massive fall is the S&P 500 slipping below the 5,150 threshold on April 12, 2024.
Furthermore, all of this is happening just after the release of the United States Consumer Price Index (CPI) data, which exceeded expectations. This has led investors to doubt the Federal Reserve’s ability to effectively lower interest rates throughout 2024.
Currently, the overall cryptocurrency market is experiencing significant downside momentum. Top cryptocurrencies like Bitcoin, Ethereum, Binance Coin, Solana, and others have experienced a drop of over 5%.
The world’s largest cryptocurrency, Bitcoin, is currently trading near the $67,400 level, and in the last 24 hours, it experienced a downside momentum of over 5%. Looking at Bitcoin’s performance over a longer period, in the last 7 days, its price experienced a modest 1% fall. Over the last 30 days, Bitcoin experienced a 6.5% downside momentum.
Bitcoin’s technical analysis and key levels
According to expert technical analysis, Bitcoin has been consolidating near its major support level of $66,570 for the past 4 weeks. However, this massive consolidation in Bitcoin might be preparation for a major price surge after the Bitcoin halving event. Similar moves occurred after the approval of spot Bitcoin ETFs, where Bitcoin consolidated for 1 month before and 1 month after approval, followed by a significant price surge. Bitcoin may be preparing for a similar move currently.
On the other hand, Ethereum is trading near the $3,250 level and has experienced over 8% downside momentum. Over a longer period, in the last 7 days, Ethereum experienced a modest 2.5% downside momentum, while over the last 30 days, its price dropped by nearly 20%. Additionally, Solana’s SOL price is also experiencing a massive over 13% downside momentum. In the last 7 days, SOL investors have experienced a 14% negative return.
