The cryptocurrency market witnessed a sharp correction in the last 24 hours, with major altcoin projects suffering significant losses. Industry pioneer Bitcoin (BTC) lost 5% of its value, reversing the previous week’s gains. This selling pressure has spread to other leading altcoins, including Ethereum (ETH), Cardano’s ADA, and BNB Chain’s BNB, mirroring Bitcoin’s decline.
Big decline in Bitcoin and altcoin projects
cryptokoin.com As we reported, Bitcoin started the day on the red side. The coin dropped from 70 thousand dollars to 66 thousand dollars. This decline also affected altcoin projects. The downward spiral can be attributed to two key factors: a resurgent US dollar and shakeout among long-term investors. The dollar index, a measure of the dollar’s strength against a basket of major currencies, reached its highest level in nearly five months, dampening enthusiasm for riskier assets such as cryptocurrencies.
Additionally, the data reveals a significant liquidation of long positions, exceeding $400 million. These positions represent bets on rising prices, and their forced closure indicates a loss of confidence among some investors. In contrast, liquidations for short positions profiting from price declines were significantly lower at $85 million.
Data reveals that Bitcoin fell 5%, while Ether (ETH), Cardano’s ADA, and BNB Chain’s BNB showed similar losses. Solana’s SOL is down 7% to trade at $185 after briefly touching $200 on Monday, while Dogecoin (DOGE) is down more than 8%. Bitcoin Cash’s BCH fell 10% due to profit taking after a 40% rise last week, driven by the expected halving for the network on April 4.
Those who have held BTC for a long time are selling their assets
Analysts at Bitfinex believe that this trend may continue in the near future. They predict that bitcoin will trend sideways in the coming weeks as long-term investors, also known as Long-Term Holders (LTHs), continue to shed their holdings.
“We expect Bitcoin to consolidate in a range for a while,” analysts said. Noting a “relatively smaller-scale” sell-off compared to past bull market peaks, they suggested LTHs who had held their bitcoin for more than 155 days were taking a cautious approach.
Market sentiment is on the negative side
Beyond the internal dynamics of the crypto market, broader market sentiment also appears to be playing a role. FxPro Senior Market Analyst Alex Kuptsikevich highlighted the resistance Bitcoin faces at the $71,000 level. He attributed this resistance to the general risk aversion in traditional markets, noting the “downward trend” in the Nasdaq 100 index. As the S&P 500 reaches new highs, Kuptsikevich emphasized the importance of the $69,500 and $68,500 support levels for Bitcoin in the coming days.
This price fluctuation serves as a stark reminder of the volatile nature of the cryptocurrency market. While short-term investors may be shaken by the sudden decline, long-term investors may see this as a buying opportunity. The coming weeks will be crucial in determining whether this is a temporary correction or the beginning of a longer-lasting bear market.
To be informed about the latest developments, follow us Twitter’in, Facebookin and InstagramFollow on . Telegram And YouTube Join our channel.