Crypto Bulls See $400M Liquidations as Solana, Dogecoin Lead Slide in Majors

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2 Apr 2024

The CoinDesk 20 index, which tracks major tokens minus stablecoins, slumped just over 4.5%.

Major tokens experienced a significant drop in the past 24 hours, with bitcoin falling 5% and other major tokens like ether, Cardano's ADA, and BNB Chain’s BNB showing similar losses.
Liquidations of long positions, or bets on higher prices, amounted to over $400 million, while shorts, or bets against, took on a relatively smaller $85 million.
Analysts at Bitfinex suggested that bitcoin is likely to remain range-bound in the coming weeks as long-term investors sell off holdings.

Major tokens slid as much as 8% in the past 24 hours as bitcoin (BTC) reversed last week’s gains amid selling pressure caused by a stronger dollar, leading to over $400 million bullish bets being liquidated.
Data shows that bitcoin fell 5%, with ether (ETH), Cardano’s ADA, and BNB Chain’s BNB showing similar losses. Solana’s SOL dropped 7% to trade at $185 after briefly touching $200 on Monday, while Dogecoin (DOGE) dropped more than 8%. Bitcoin Cash’s BCH fell 10% amid profit-taking after a 40% rally in the past week, buoyed by the expected halving event for the network on April 4.

The broad-based CoinDesk 20, a liquid index tracking major tokens minus stablecoins, slumped just over 5%.
Longs, or bets on higher prices, took on more than $400 million in liquidations, with shorts, or bets against, taking on a relatively smaller $85 million. A liquidation happens when a trader has insufficient funds to keep a leveraged trade open.
Analysts at crypto exchange Bitfinex told CoinDesk in an email that some long-term investors sold off holdings in the past week, adding they expect bitcoin to be range-bound in the coming weeks.
“We believe that bitcoin is likely to continue to consolidate within a range, as previously dormant supply, particularly among Long-Term Holders (LTHs), is being sold (although at a relatively smaller scale than previous bull market tops),” Bitfinex said.
“There is strategic profit-taking observed among the LTH cohort (holders of BTC of more than 155 days),” the analysts added.
Elsewhere, FxPro senior market analyst Alex Kuptsikevich said in a message that bitcoin faces resistance at the $71,000 level as broader markets show caution against riskier assets.
STORY CONTINUES BELOW

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“Bitcoin's fourth attempt to consolidate above $71K this week was unsuccessful. The Nasdaq100 also showed some downward bias, indicating a cautious attitude towards risky assets, although the S&P500 closed at another high,” Kuptsikevich said. “Bitcoin has thus found strong resistance, and the $69.5K and $68.5K levels attract our increased attention.”
Edited by Parikshit Mishra.
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Solana Price Lost 9% Today! Will SOL Price Reclaim $200 This Week?

The crypto industry has displayed a sharp fall, with the price of Bitcoin plunging below the $67,000 mark during the early trading hours today. Following this, top altcoins have followed in the footsteps of the market leader and displayed a similar trend in their respective portfolios.

On the other hand, the Solana token has displayed a significant bearish curve in its chart within the past 24 hours, indicating an ongoing correction in the cryptocurrency market.

Solana Price Breaking Down Its Major Support!

After displaying a neutral trend for a while, the SOL price regained momentum and broke out of the resistance level, where the price traded sideways for the next five days. As the market volatility increased, the Solana price recorded a massive jump of over 75% within twelve days.
TradingView: SOL/USDT
Following this, the market lost momentum, and the Solana token recorded a correction of approximately 19%. Since then, the SOL coin price has been trading in a closed range between $179.30 and $200 and is repeatedly failing to break out of its resistance level.
Furthermore, the Solana price has recorded a correction of approximately 9% in valuation within the past day, resulting in the SOL coin trading close to its support level. Moreover, this altcoin has lost approximately 5% over the past week, indicating a weak bullpower in the crypto space.

SOL’s Market Sentiments:

The Moving Average Convergence Divergence (MACD) displays a rising red histogram and a constant decline in the averages, highlighting an increased selling-over-buying pressure in the crypto industry.
On the other hand, the Cross EMA 50/200-day shows a neutral price movement, indicating uncertainty in the price action for the altcoin this week.

Will Solana Price Go Down?

If the market holds the price above the important support level of $180, the bulls will regain momentum and prepare to retest its resistance level of $200. Furthermore, if the bulls maintain the price at that level, the Solana token will attempt to test its upper resistance level of $220 this month.
Conversely, if the bulls fail to regain momentum, the SOL price will test its support level of $180. Moreover, if the bears continue to hold power over the bulls, the price will continue bleeding and test its lower support level of 156.75 during the upcoming weeks.
Altcoins Price Analysis

What Should Be the Bitcoin Trading Strategy for This Week: Sell or Buy?

Story Highlights

Bitcoin displays a fresh bearish action, which has circulated misty clouds over the price for the next few days
This has caused the market participants to remain bewildered as to whether to accumulate the token or sell to prevent excessive loss

With just 16 days left for the Bitcoin halving, the pre-halving rally appears to have settled as the price has triggered a fresh descending trend. The rising upward pressure has initiated some panic selling, but on the other hand, some of them do believe it could be a great time to accumulate. Considering the recent BTC price action, it appears that the price is at the foothill of a major expansion and as a result, buying Bitcoin at a discount could be a good idea.

Meanwhile, the technicals suggest there is more scope for the price to go lower, which may raise bearish alarms. Hence, at this stage, is it a good idea to jump into a new trade or sell the existing ones?
The BTC price appears to have entered a phase of calmness after orbiting around $70,000 constantly. Moreover, the Bollinger bands also suggest minimal fluctuations, which indicates a period of stability ahead. However, the levels at $73,700 and $62,500 remain extremely important for the token, as a breach of either of them may suggest the next price action for the token.
Amid the rising dilemma of whether to buy or sell Bitcoin, a popular analyst, Scott Melker, in his new update, pushes a bullish narrative. As per the analyst, more than $1 trillion is expected to flood in with huge institutions like the Bank of America that might step into the crypto markets.

He says, “Strong rumours that both Bank of America and Merrill Lynch will be opening the doors to bitcoin spot ETFs to their clients in the coming months,”
“That’s a drop in the bucket to what is coming,” he continues, “Why? Because most (individual retirement accounts) and institutions have not even yet unlocked access to these Bitcoin spot ETFs for themselves or their clients.”

This inflow of more than $1 trillion may have a significant long-term impact on the BTC price, given that the asset already has a market capitalization of more than a trillion. Therefore, there are fewer reasons to be bearish on Bitcoin but a lot more to be bullish. Gold and Bitcoin both recorded their Q1 close with corrections, while the S&P 500 appears strong enough. Now that the gold prices are touching the skies, the crypto markets, specifically the Bitcoin price, may also follow the rally.
Bitcoin Price Analysis

Memecoin Bloodbath Continues! Dogecoin To Retest It’s Low Of $0.15?

The crypto market started the month of April on a bearish note, highlighting increased selling pressure in the crypto space. Further, the leader of the memecoin category, Dogecoin price, has recorded a correction of over 12% in valuation, resulting in this altcoin breaking down its support level.

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Furthermore, the top five memecoins have displayed a similar trend, with the price of dogwifhat (WIF) tokens recording the highest loss of over 14%. Meanwhile, other tokens include Shiba Inu, PEPE, FLOKI, and BONK, with each recording a loss of 6.5%, 12.15%, 9%, and 10.30% in their portfolios.

Dogecoin Price Breaks Down Its Crucial Support!

The DOGE price displayed constant price volatility during the first half of March, during which the price recorded a significant bullish move at the start, after which the price recorded a consolidated trend for a brief period. After this, it lost momentum and fell to test its low of $0.122.TradingView: DOGE/USDT
Following this, the market regained momentum and jumped approximately 85% within the next eight days. After this, the bulls traded in a closed range between $0.206 and $0.227. Recently, the bulls experienced a bearish reversal, and since then, the price has been displaying a negative trend.
The Relative Strength Index (RSI) breaks down the halfway level, indicating an increased selling-over-buying pressure in the crypto industry. Moreover, the averages show a constant decline, suggesting a bearish action for the leader of memecoins this week.

Will DOGE Price Increase?

If the market pushes the Dogecoin price above the resistance level of $0.188, the bulls will regain momentum and test its upper level of $0.206 this week. Maintaining the price at that level will set the stage for DOGE memecoin to prepare to test its upper resistance level of $0.2275 in the coming time.
However, if the bears continue to dominate the market, the Doge coin price will continue losing momentum and fall to test its lower support level of $0.169 this month.
Altcoins Price Analysis

Ethereum (ETH) Price At Risk of Dropping Below $3K – Here’s Why

Ethereum Down

The total cryptocurrency market cap slipped by around 5 percent to hover about $2.6 trillion on the second day of April. With about seventeen days to the fourth Bitcoin (BTC) halving, more investors are positioning their crypto portfolios for the best returns.

Moreover, the macro crypto bull run takes the entire industry, with some sectors, led by meme coins, outshining the rest.

Heavy Crypto Bearish Cloud Ahead

The cryptocurrency industry has gained over $1 trillion in the past few months following the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States. However, short-term crypto traders rush to take profits and distribute their portfolios for maximum gains.
As market intelligence platform Santiment noted earlier, more crypto traders have been taking shelter in the stablecoins industry recently in anticipation of buying a possible dip.
Consequently, the cryptocurrency market is expected to be on the receiving end in the coming few days before the halving impact gets noticed.

ETH Price Action

#Ethereum dropping below $3,460 is a problem for the bulls! Given the lack of support, it increases the chances for a further $ETH correction toward $2,850 or lower. pic.twitter.com/dFpnpZtBVM
— Ali (@ali_charts) April 2, 2024

According to an Ethereum price analysis by a popular crypto analyst, Ali Martinez, ETH price will drop as much as $2,850 in the near term. The crypto analyst noted that about 2 million Ether addresses purchased around 1.64 million Ethers between $2,846 and $2,951.
Meanwhile, the daily Fibonacci Retracement shows that Ether’s price against the US dollar must hold onto the support range between $3,193 and $3,298 in the coming days to invalidate a possible capitulation below $2k.
Ethereum Price Analysis