Bitcoin Plummets to $66,000 Prompting Over $240 Million Market Liquidations

By: Eva Baxter

Bitcoin's price dropped dramatically on April 2, descending rapidly to $66,000 before making minor recovery to approximately $66,500. From its March 14th all-time peak of $73,500, this indicates an almost 10% dip. Data revealed by Coinglass illustrates that this dive led to massive liquidations across the cryptocurrency sphere, surpassing $240 million in positions being terminated in the previous 12 hours. Long position liquidations overwhelmingly led the charge, amounting to a staggering $190 million.

Bitcoin accounted for a significant chunk of this wild ride, with total liquidations close to $88.43 million, out of which $63 million were of long position closures. This signifies Bitcoin's most significant long liquidation event since March 19, demonstrating the persistent volatility affecting this leading digital token.

Post the drop, Bitcoin attempted a recovery wave, moving above the $66,800 mark. It even breached the 23.6% Fibonacci retracement level of the drop from the $69,884 peak to the $65,992 nadir. Nevertheless, Bitcoin is currently trading below $68,500. Resistance persists at the $68,000 level followed by a major resistance at $68,500.

If Bitcoin stumbles in surpassing the $68,000 resistance zone, further downslide is anticipated. Immediate support on the downside stands at $66,000, followed by crucial supports at $65,000 and $64,000. In the event of breach below $64,000, the token can potentially plummet to the $62,500 level, with a possibility of sliding down towards a $60,500 support zone.