Bitcoin continues to decline for the fifth day in a row. Since the beginning of the month, the price of the cryptocurrency has fallen by 41%. This is the largest red candle in the history of the market. The precipitous pullback caused the liquidation of at least $ 7 billion in positions of half a million traders. The real value is likely to be much higher, since recently the Binance exchange API transfers only one liquidation data per second.
Earlier today, bitcoin fell to its lowest point in 3 months, about $ 36,400. This was followed by a rebound to $ 39,000, but at the time of writing this publication in 5 minutes the rate fell by 7.2% and now renews lows again below $ 33,000, which is already cannot be completely written off for the liquidation of previously opened positions. Bitcoin is now trading even below levels on February 8, when Tesla announced the purchase of the cryptocurrency and launched its rate to $ 65,000.
Bitcoin fell below its 200-day moving average on Monday, around $ 39,825, which is seen as an important support line. The countdown is from April 29, 2020, when the price of BTC was $ 8,000.
Other major cryptocurrencies are in an even worse position today. Ethereum, Binance Coin, Cardano, Dogecoin, XRP, Polkadot – they all lose over 40%. Ether, for example, can now be bought at half the price of a week ago.
The current decline is associated primarily with active sales in the spot market. The balance of exchange wallets has increased by 65,000 BTC over the past 7 days. This distinguishes it from the first phase of the fall in mid-April from $ 60,000 to $ 52,000, when the collapse was the result of the liquidation of margin positions.
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