On the night of April 2, there was a significant drop in the price of Bitcoin — from $69,500 to $66,000, representing a 5% decrease in just one day. At the moment, Bitcoin is trading at around $66,800, with a market capitalization of $1.31 trillion and a trading volume of $42 billion. Besides Bitcoin, other leading cryptocurrencies also experienced negative dynamics.
For example, Ethereum (ETH) dropped to $3,380, losing 4.5% of its value in a day. The market capitalization of Ethereum is now about $406 billion. According to Coinglass data, the volume of liquidations in the futures market over the past 24 hours reached $395 million, with the majority of liquidations ($312 million) coming from long positions.
Technical analyst under the pseudonym Ali warned of potential risks of Ethereum dropping below the support level at $3,400, which could indicate the formation of a “bearish flag” and consequently lead to a more significant price drop. Researchers from QCP Asia also pointed out signals from the options market, foreshadowing a possible sharp decline.
Major liquidations on platforms like Binance played a significant role in accelerating the price drop, as a large number of retail traders led to a decrease in the funding rate of perpetual futures. After this correction, the price of Bitcoin returned to the range of $60,000 to $72,000, but the rest of the futures market remains in a state of high volatility.
