Why Has The Bitcoin Price Dropped?

Today, the price of Bitcoin is declining after the earlier rebound to $66,000 vanished, with traders adopting a cautious stance while observing how the market responds to geopolitical developments.

Source: www.haberturk.com

The bullish momentum that drove Bitcoin to its record high of $73,835 on March 14 is now diminishing, with the price down 13% from that peak as of April 15. This contraction has resulted in a more than 7% decline in just one week, even as the price of Ether approaches its lowest point against BTC in nearly three years. Let's delve deeper into the factors influencing today's Bitcoin price.

Bitcoin Is Experiencing Its Typical Pre-Halving Retracement

Certain analysts suggest that Bitcoin is entering the initial stages of the pre-halving phase, which historically adheres to a specific pattern. Like previous halving cycles, BTC's price seems to be adhering to the five phases associated with Bitcoin halvings. The pre-halving decline is occurring approximately 18 days before the anticipated Bitcoin halving date on April 20. According to an independent analyst's recent post on X social network, the current price movement is consistent with a pre-halving retracement. In the 2020 halving cycle, Bitcoin experienced a dip of around 20% during this phase.

Bitcoin Liquidations Are On The Rise

A noticeable surge in Bitcoin futures market activity can be observed through liquidations. Long liquidations corresponded with increased volatility. Within a 24-hour window on April 15, more than $43.7 million worth of long positions were liquidated. Specifically, Bitcoin's long liquidations soared to over $20.6 million within just 4 hours on the same day. When BTC long positions are liquidated without corresponding buying pressure from traders, it tends to exert downward pressure on Bitcoin price. Bitcoin trading volumes have witnessed a significant decline, dropping by over $24 billion from the year-to-date peak of $45 billion in daily activity recorded on March 5th. As exchange trading volume declines, Bitcoin faces continued pressure from spot selling, contributing to the drop in its price.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.