Bitcoin Crashes Below $40K, as Fed Maintains Ultra-Hawkish Stance
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Yesterday’s market crash saw hundreds of millions of dollars displaced across the cryptocurrency market, as the total market valuation plunged by -6.4%, its steepest decline since March 4.
The bearish market tone began last week after Federal Reserve Governor Lael Brainard made some hawkish comments, who argued that reducing inflation pressure was the primary objective.
Meanwhile, US stocks and bonds followed a similar pattern with the cryptocurrency industry as both sectors recorded severe drawbacks.
Monday’s bearish market tone sent BTC tumbling below the $40K threshold, as the benchmark cryptocurrency touched the $39.2K low for the first time in four weeks. Bitcoin has since rebounded mildly and currently trades at the $40.2K level.
Coinglass recently revealed that bullish traders took a severe beating as liquidations ran over $439 million across the crypto market, with the largest single loser accruing a $10 million loss.
Of the $439 million liquidations, about $152 million occurred in Bitcoin trades alone, while Ethereum traders suffered $103 million in liquidation.
The altcoin sector also partook in the mass decline, with many coins recording double-digit drops. Interestingly, yesterday’s decline replicates the losses recorded last week, which exceeded $400 million.
Key Bitcoin Levels to Watch — April 12
Bitcoin has suffered its worst daily decline since March 4, following a slump to the $39.2K level point yesterday. The benchmark cryptocurrency has since regained composure, as it re-emerged above the $40K support but remains under intense bearish pressure.
BTC is now fighting to reclaim the upper-$40K zone, to plant its feet above the long-lasting trendline. That said, we could witness a bullish attempt at the $41K level as trading conditions enter overheated conditions. However, until the primary cryptocurrency recovers above the $43K top, every upward move will be considered a mere bullish correction, leading to a steeper decline.
Meanwhile, my resistance levels are at $41,000, $42,000, and $43,000, and my key support levels are at $39,000, $38,500, and $37,500.
Total Market Capitalization: $1.87 trillion
Bitcoin Market Capitalization: $765.7 billion
Bitcoin Dominance: 41%
Market Rank: #1
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