Crypto News

BTC Price Plummets: Long Liquidations Fuel 3% Dive in Minutes

Published by
Nonhlanhla P Dube
  • Bitcoin’s price dropped by 3% in minutes on April 19th, causing it to return to $29,000.
  • The decline was due to a cascade of long liquidations that sent BTC/USD plummeting lower.
  • The sudden drop came after Bitcoin rebounded strongly above the $30,000 mark the day before.

Bitcoin’s price took a sharp dip of 3% in minutes on April 19th, resulting in the cryptocurrency returning to $29,000. The sudden decline was driven by a cascade of long liquidations that sent the BTC/USD plummeting lower, according to data from Cointelegraph Markets Pro and TradingView. The pair hit a low of $29,015 on Bitstamp, which was the lowest point since April 10th.

The drastic move came after Bitcoin rebounded strongly above the $30,000 mark the day before. However, bulls were ultimately unable to hold onto higher levels, and the cryptocurrency has seen its latest challenge as volatility returns to the market.

According to Michaël van de Poppe, the founder and CEO of trading firm Eight, the cryptocurrency market is experiencing a “deep correction” as Bitcoin failed to hold at $29,700-29,800 and then rapidly dropped through a cascade of liquidations. Prior to the drop, monitoring resource Material Indicators had flagged changing conditions on the Binance order book, stating that the result could still swing both ways, with either bulls or bears profiting.

Despite the negative turn of events, some traders have remained optimistic. For instance, bullish trader Crypto Kaleo took to Twitter to tell followers that “dips are gifts” and that the retracement was “beautiful” for tagging the range lows.

Unfortunately, those who were long on Bitcoin weren’t as fortunate, as liquidations began to mount rapidly. As of writing, total cryptocurrency long liquidations for April 19th stood at around $175 million on platforms monitored by data resource Coinglass.

This development comes amidst growing concerns over the sustainability of the cryptocurrency market’s recent growth, which has seen unprecedented highs and lows. While Bitcoin’s value has risen dramatically over the past few months, with many predicting that it could eventually reach $100,000 or more, there are still many questions about the sustainability of this trend. As such, investors are advised to exercise caution when investing in cryptocurrency, given the high levels of volatility and uncertainty that currently exist within the market.

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

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Published by
Nonhlanhla P Dube
Tags: Bitcoin

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