Market Downturn as Bitcoin Drops Below $70,000
The cryptocurrency market started the weekend on a bearish note as Bitcoin experienced a sudden pullback, causing its price to fall below $70,000. This selling pressure also affected the altcoin market, with major coins like Ethereum and XRP dropping 8-10%, and Cardano and Dogecoin experiencing a 12% decline in the last 24 hours. The market downturn can be attributed to the expiry of over $3 billion worth of Bitcoin and Ethereum options on Friday, March 15.
A recent tweet by WuBlockchain highlighted that the cryptocurrency market saw significant liquidations amounting to $576 million, with long orders accounting for $448 million of this total. This event underscores the volatility of the market and the high risks associated with leveraged positions. Approximately 167,000 traders were affected by these liquidations, with the largest single liquidation order valued at $13.3002 million occurring on OKX in a BTC-USDT swap.
Bitcoin (BTC)
Bitcoin is the first and most well-known decentralized digital currency that enables peer-to-peer transactions without intermediaries. The BTC price had been bullish for the first half of March, experiencing a 24.8% gain from $59,000 to $73,650. However, this recovery rally led to an increase in supply pressure mid-week, resulting in an 8.6% drop in the last 48 hours. With a market cap of $1.3 trillion, Bitcoin is currently trading at $67,300, signaling a correction sentiment among traders.
Interestingly, a Bitcoin whale recently withdrew 800 BTC (worth $57.24 million) from Kraken, bringing the total amount moved from the exchange since March 1 to 13,240 BTC ($909 million). This transaction suggests that smart money sees a buy-the-dip opportunity and the potential for a higher recovery than the current all-time high (ATH) of $73,750.
According to the Fibonacci retracement level, traders may find suitable demand pressure at $65,487 and $60,350, which coincide with the 23.6% and 38.2% FIB levels.
Cardano (ADA)
Cardano (ADA) is a blockchain platform known for its emphasis on security and sustainability, powered by a proof-of-stake consensus mechanism. It stands out for its research-driven approach to development, aiming to offer more scalable, interoperable, and sustainable blockchain solutions.
In the past two weeks, ADA has experienced increased volatility, with its price fluctuating between $0.8 and $0.68. The Cardano price recently dropped 7.75% to $0.695, approaching the bottom support of the new range. At present, Cardano’s market cap is $24.5 billion, with a trading price of $1.7 billion. A breakout beyond the horizontal range will be a significant indication for ADA price movement.
Dogecoin (DOGE)
Dogecoin (DOGE) started as a meme but has become a widely recognized cryptocurrency, known for its vibrant community and use in tipping and charitable donations. During the recent meme rally in the crypto market, DOGE’s price surged from a low of $0.081 in late February to a high of $0.206, marking a growth of 151%.
However, DOGE has experienced increased volatility in the past two weeks, as evidenced by price consolidation between two converging trendlines. The current market cap for Dogecoin is $24.47 billion, and with a 6.8% intraday price drop, sellers are testing a breakdown below the lower trendline. If DOGE breaks out of this triangle pattern, it may experience immediate support at $0.147, followed by $0.13. However, the pennant pattern formed by these converging trendlines suggests the potential for an uptrend continuation, with a possible high of $0.27.
Takeaway: A Buying Opportunity After Correction
After a strong recovery trend, the Bitcoin price is now experiencing a post-correction phase, which presents an opportunity for buyers to regain strength. The overall trend remains bullish, and this retracement may offer a suitable dip opportunity for potential buyers.
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