On April 10th, 2022, the majority of cryptocurrencies traded in the green in early morning dealings.
Bitcoin, the world’s most valuable cryptocurrency, rose 0.62 percent in the last 24 hours to $42,679.03, while Ethereum’s price rose 1.26 percent to $3,254.76.
Today, the price of Tether increased by 0.01 percent to $1. However, in the last seven days, all of these main cryptocurrencies have lost up to 7% of their value.
Bitcoin (BTC) and other major altcoins are fighting to defend immediate support levels, signalling that bears have spotted an opportunity and are attempting to seize control of the market.
Long-term Bitcoin bulls, who foresee a large return in the next few years, do not appear to be concerned by the short-term price activity.
Long liquidations hit 2-month high
BTC’s sharp drop from 2022 highs triggered a wave of major market liquidations. This year, large long holdings that expected the token to find a bottom experienced some of their greatest liquidations.
In just over a week, BTC went from almost $48,000, its highest level this year, to $42,400. The dramatic drop in the token is due to increased fears about inflationary pressures this year, as well as harsh price-control measures by the Federal Reserve.
The biggest amount of long positions have been liquidated since mid-January as BTC fell below $45,000, which was considered a critical support level. On Wednesday, as the token fell below the support level, almost $101 million in long positions were liquidated, according to Coinglass data.
Over the last six days, long positions worth $222 million have been liquidated. According to the statistics, a big percentage of traders who were counting on greater BTC growth were caught off guard by the token’s decline.
Even on a Saturday, when crypto trading volumes are typically low, BTC longs were being liquidated on a big scale. Long holdings accounted for 73% of the $64 million in BTC positions liquidated in the last 24 hours.
The road ahead
Following BTC’s dramatic drop, markets are unsure where the token will head next. In the worst-case situation, the token might touch the $33,000 lows of 2022. The token also appeared to be losing ground ahead of a halving event on April 11 that will see mining payouts cut in half.
The cryptocurrency could experience significant gains in the coming weeks, according to technical signs and whale activity. However, public opinion remains cautious. After two weeks of neutrality, the BTC fear and greed index has returned to fear territory.
The token may potentially fare better as institutional investment in cryptocurrency increases this year.