The cryptocurrency market experienced a turbulent week as Bitcoin’s price plummeted from $83,000 to $74,000. This sharp drop triggered the largest Bitcoin liquidation event of the ongoing bull market, with over 7,500 BTC worth more than $500 million liquidated across major exchanges. Investors are left questioning the market’s stability as analysts urge caution during these volatile times.
Record Liquidation Sends Shockwaves Through the Market
Sunday, April 6, marked an unprecedented event in Bitcoin’s bull market, with the $500 million liquidation surpassing all previous selloffs since 2023. The sharp decline in price led to panic selling among leveraged traders, exacerbating the downward momentum.
Market analysts have pointed to external factors, including economic uncertainty tied to U.S. President Donald Trump’s policies, as a potential trigger. His recent retaliatory tariffs have fueled global financial instability, compounding the bearish sentiment in the crypto market.
Experts Urge Caution Amid Bearish Conditions
As the market reels from this historic selloff, crypto experts are sounding alarms about the risks of leveraged trading. Analysts like DarkFrost from CryptoQuant stress the importance of risk management, particularly during unpredictable market conditions.
CryptoQuant founder Ki Young Ju highlighted that safe-haven assets like gold have been outperforming Bitcoin, with gold rising 11% since January. While Ju remains optimistic about Bitcoin’s potential to rival gold’s $20 trillion market cap, he cautioned against short-term optimism amid the current volatility.
Bitcoin Recovery Shows Signs of Strength
Despite the chaos, Bitcoin has shown resilience, bouncing back to $83,000 after its sharp fall. The recovery has been marked by critical support levels at $74,600 and resistance at $77,700, which have played a pivotal role in stabilising the price.
On April 8, Bitcoin saw significant upward momentum when a golden cross—a bullish technical indicator—formed, pushing the price from $78,290 to $82,990 within an hour. However, Bitcoin faced rejection at $83,650, leading to a slight downtrend with support holding steady at $81,530.
What’s Next for Bitcoin?
While Bitcoin’s recovery has instilled some market optimism, its inability to sustain upward momentum raises questions about its short-term trajectory. Overbought conditions on the RSI suggest a potential dip before a sustained rally can materialise.
If Bitcoin fails to hold its $81,000 support level, analysts predict a possible pullback to the $70,000 range. However, if the market stabilises, Bitcoin could regain its bullish footing, paving the way for a stronger uptrend.
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