Bitcoin experienced a significant drop in price, falling over 7.1% in the past day and dropping below the $65,000 mark for the first time since March 24.
According to data from Coinglass, the 14th week of the year is historically one of the worst weeks for Bitcoin’s price performance, with an average drop of 8.33% during this week.
In the past 24 hours, Bitcoin’s price fell over 6%, reaching a daily low of $64,610 at 1:35 pm (UTC). However, trading volume for the cryptocurrency increased by over 75% during the day to reach $46 billion, according to CoinMarketCap.
Popular crypto analyst Rekt Capital argues that Bitcoin’s price momentum will continue to slow down as the Bitcoin halving approaches. The analyst suggests that Bitcoin’s price needs to stay above the $65,600 weekly range low to avoid further losses.
Coinglass data indicates that if Bitcoin’s price falls to the $65,000 mark, over $249 million worth of long leveraged positions would be liquidated across all exchanges.
Following the price correction, Bitcoin has reset several key metrics that previously indicated an overheated market. The relative strength index (RSI), a popular momentum indicator, fell to 48 on the daily timeframe, suggesting that Bitcoin is no longer overbought, according to Tradingview.
Andrey Stoychev, the head of Prime Brokerage at Nexo, believes that Bitcoin’s price correction can be attributed to newcomers who entered the market in the past two months since the approval of the United States’ spot Bitcoin exchange-traded funds (ETFs).
Traders should keep an eye on the $64,000 mark, as there is over $17.21 million worth of Bitcoin futures liquidation leverage on Binance. Additionally, $9.92 million worth of BTC could be liquidated at the $63,500 mark, according to Coinglass.
In the past 24 hours, over $152.5 million worth of leveraged Bitcoin positions were liquidated, with $109.11 million coming from long positions, according to Coinglass.
Bitcoin’s sudden drop resulted in over $165 million of leveraged crypto liquidations in less than two hours early Tuesday morning.
Meanwhile, the dormant Bitcoin supply has seen an increase in activity. Long-term holder (LTH) supply has decreased by 900,000 BTC since its peak in December 2023, with Grayscale accounting for 286,000 BTC, or a third of the decline, according to a report by Glassnode.