Bitcoin, the pioneering cryptocurrency, experienced a significant plunge, briefly falling below the critical $41,000 threshold. This sudden drop in value marked a stark reversal of the digital currency's recent gains, highlighting the inherent volatility of the crypto market. As some investors opted to cash in on the recent price rally, Bitcoin's value tumbled, causing ripples across the crypto landscape.
The decline was notable for its intensity, with Bitcoin's price plummeting by as much as 7.5% to a low of $40,521, before further decreasing by 4% to $41,992, as per the data recorded at 10:21 p.m. ET Sunday. This downturn represented Bitcoin's most substantial single-day decline in a month, effectively erasing nearly a week's worth of gains. Over the last 30 days, the cryptocurrency had seen an uptick of over 12%, and since the beginning of the year, it had rallied impressively, surging over 150%.
This recent decline was precipitated by over $270 million worth of long positions being liquidated, as observed by CoinGlass, a platform specializing in cryptocurrency futures trading and information. Additionally, this downturn resulted in approximately $1.2 billion being wiped out from the open interest on Bitcoin, which stood at around $17.9 billion at that time.
Several factors have been fueling Bitcoin's ascent this year, including heightened expectations around the U.S. Securities and Exchange Commission potentially approving one of the 13 pending spot Bitcoin exchange-traded fund (ETF) applications. The approval of these ETFs is anticipated to open doors for Wall Street giants to invest in Bitcoin, potentially leading to a significant influx of investment into the broader cryptocurrency market.
Moreover, the upcoming Bitcoin Halving event, which is expected to reduce the total circulating supply of Bitcoin, is also predicted to push prices upwards. Industry watchers and crypto enthusiasts are closely monitoring these developments, speculating on their potential impact on Bitcoin's valuation.
A crypto trader and technical analyst, known as @thescalpingpro on social media, shed light on Bitcoin's price trajectory. They pointed out that following a consistent pattern, Bitcoin usually experiences a period of ranging after major upward movements, followed by a 20-22% correction before its next upward trajectory. This pattern suggests that if Bitcoin's price continues to hover below the mid-range, it could trigger a rally in altcoins while Bitcoin remains relatively stable.
The analyst further elaborated that a 21% pullback from the mid-range could see Bitcoin's price drop to around $35,000, aligning with a monthly support level. Despite these fluctuations, the overall trend for Bitcoin remains bullish, and market dips are viewed as buying opportunities by many investors.
As of Monday morning, Bitcoin had marginally recovered, climbing back towards the $42,000 mark. However, it continued to trade in the red zone, with its price standing at $42,431.80, accompanied by a 24-hour trading volume that had surged by 81.94% to $26,686,430,095. This recent price action indicates a 2.85% decrease over the past 24 hours and a modest 1.8% gain over the previous week.
CoinMarketCap's data revealed that Bitcoin's current circulating supply is 19,566,725 BTC, with its market cap experiencing a 2.8% dip, reflecting the ongoing volatility and the challenging landscape of the cryptocurrency market.
