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Major Sell-Off Rocks Crypto Market: Bitcoin, Ethereum, and Altcoins Plunge

Published 13/04/2024, 10:18
© Reuters.  Major Sell-Off Rocks Crypto Market: Bitcoin, Ethereum, and Altcoins Plunge

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  • Long liquidation was almost eight times those of shorts as prices tumbled.
  • Resistance at $70,602 might stop BTC’s recovery while ETH could drop to $3,082.
  • SOL might swing sideways but ADA might rise toward $0.55 if buying pressure appears.

The crypto market has had a rough last 24 hours as prices crashed and liquidations hit unimaginable numbers. According to Coinglass, about $937.32 million worth of leveraged positions were wiped out of the market in the last 24 hours with longs suffering a major part of it. While long liquidations were worth $825.14 million, shorts only accounted for $112.12 million.

Crypto Market Liquidation (Source: Coinglass)

The reason for this wipeout was glaring as Bitcoin (BTC) collapsed to $65,000. Ethereum (ETH) was included as its price plunged to $3,100. Solana (SOL) declined to $141 while Cardano (ADA) was the worst performer out of the top 10.

An occurrence like this could be tagged a pre-halving rally considering that the Bitcoin halving is about seven days away, with miners facing financial pressure and taking out liquidity from the market. Here is how prices might fare going forward.

Bitcoin (BTC)

At press time, the BTC/USD chart displayed how bulls were trying to cover up for the losses experienced lately. Some of the efforts have yielded results as the coin price climbed to $67,445.

However, the Relative Strength Index (RSI) remained in the bearish zone, suggesting that BTC’s bullish momentum might not be strong enough to trigger a solid recovery. If the RSI continues to fall, then Bitcoin might pull back again toward $65,153. On the other hand, if the momentum rises, the price of the coin might appreciate.

BTC/USD 4-Hour Chart (Source: TradingView)

Coin Edition also looked at indications from the Supertrend. According to the indicator, BTC can recover. However, there was a sell signal at $70,602 which might prevent the coin from reaching its all-time high within the next few days.

Ethereum (ETH)

ETH’s price at press time was $3,257. Before the price crash, the altcoin had attempted to challenge $3,700 but was pegged back by resistance at $3,599. As a result, bulls were not able to defend the support at $3,440.

Furthermore, the Awesome Oscillator (AO) was down in the red zone, indicating an increasing downward momentum. If bulls fail to curb the decline, ETH’s price might slip to $3,082 before any significant bounce occurs.

The Moving Average Convergence Divergence (MACD) also supported the decline as the 26 EMA (orange) crossed above the 12 EMA (blue). This indicated that sellers were in control and buyers had not overthrown them yet.

ETH/USD 4-Hour Chart (Source: TradingView)

Solana (SOL)

For a token that showed signs of retesting $200, SOL’s decline was terrifying. At press time, the value was $152.90. Indications from the 4-hour chart showed that the price might continue to languish between $149.29 and $167.52 in the short term.

This was because the 20 EMA (yellow) was above the 9 EMA (blue), suggesting a bearish trend. However, if buying pressure increases, SOL might have a chance at testing the $180.42 resistance. But over the next few days, that seemed unlikely.

SOL/USD 4-Hour Chart (Source: TradingView)

Cardano (ADA)

Cardano’s dump was harder than other cryptocurrencies in the top 10. On April 12, the token moved from $0.59 to $0.45. While it had climbed back to $0.51, indicators suggested that a recovery back to $0.59 could be difficult.

As of this writing, the On Balance Volume (OBV) was down, indicating a lack of buying power which could foreshadow higher prices. Beyond that, the RSI remained closer to the oversold region.

ADA/USD 4-Hour Chart (Source: TradingView)

Should buying pressure appear, ADA might climb toward $0.55. However, there is a chance the bears might try and tug the price back. If this is the case, the price of the token might decline again to $0.49.

The post Major Sell-Off Rocks Crypto Market: Bitcoin, Ethereum, and Altcoins Plunge appeared first on Coin Edition.

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