After a week of notable price surges, Bitcoin (BTC) underwent a significant correction in the past 24 hours, experiencing a 4.95% decrease, with its current trading value at $67,292 after having touched the $65,099 level. This decline was closely tied to a downturn in traditional markets, influenced by geopolitical uncertainties surrounding potential actions by Iran against Israel. Consequently, both the S&P500 and Nasdaq experienced declines, while traditional safe-haven assets like gold saw appreciation.
The drop in Bitcoin’s price had a ripple effect, leading to depreciations in other cryptocurrencies as well.
Following Bitcoin’s trend, Ethereum (ETH) and Solana (SOL) also witnessed substantial drops in their prices. SOL plummeted by 12% over the past day, while ETH saw an 8.5% decline during the same period. As a result, both SOL and ETH breached their previously established higher lows, disrupting their bullish trends.
ETH’s price descended to $3062 during this downturn, yet managed to recover to $3259 at the time of reporting. Ethereum had previously tested this level on March 20, suggesting a potential upward trajectory towards the $3400 level in the near future.
Solana followed a comparable path. Despite the recent correction, Solana’s price movement since April 1 indicated a possible decline, as it showed multiple lower lows and lower highs, signaling a bearish trend.
For both ETH and SOL to rally, a substantial resurgence in bullish momentum would be necessary.
Whale Influence on Prices
Despite the price corrections, interest in BTC and ETH remains robust. Data from Santiment indicates a notable increase in the number of addresses holding BTC and ETH in recent weeks. This suggests that the recent price decline might have been instigated by profit-taking behaviors among a select few whales.
Trader Response and Liquidations
In the past 24 hours, $947 million worth of positions were liquidated, with $824.94 million originating from long positions. Traders bullish on BTC, ETH, and SOL suffered the most significant losses. However, it remains uncertain which direction BTC will take, especially with the halving event looming on the horizon