Last night, the crypto market experienced a heavy price correction, resulting in futures positions liquidations worth 400 million dollars.
After Bitcoin and Ethereum, which lost 4.5% and 4.1% respectively today, even other high-cap tokens have recorded similar losses.
After this dip, the bulls could rest for a few weeks, waiting for the euphoria to visit the crypto market again.
Let’s see below which are the most important price zones to keep under control.
Summary
Crypto market in red: BTC -4.5% ETH -4.1%
It wasn’t an April Fool’s joke: the bearish movement yesterday on Monday, April 1st didn’t stop there and continued with another dump overnight, triggering several liquidations of bulls in the crypto futures market.
The results of price action speak for themselves: Bitcoin in today’s candle shows a loss of 4.5% while Ethereum stops at 4.1%.
Even the rest of the altcoin sector is not far behind, with Solana seeing a 5% contraction, Dogecoin 9.1%, and Dogwifhat 10.1%.
As shown in the “CryptoBubbles” graph, cryptocurrencies like Avalanche, Binance Coin, Chainlink, Cardano, Polkadot, Near, Tron, Ripple, and many others are also experiencing negative performance in the last 24 hours.
More or less all the top100 tokens in the CoinMarketCap ranking opened the month of April with declines, with the exception of stablecoins and a few other isolated cases where prices are rising.
Among these we mention Mantle, with MNT growing by 0.92% in the last 24 hours after absorbing all the dump of the night, Bitget and its token BGB which marks one of the most bullish price actions in the market growing by 3.25% and finally Maker with MKR stabilizing at 0.34%.
These tokens are to be kept under control because they could be the first to explode upwards if BTC were to reverse its course and return to the siege of new all-time highs.
$400 million in crypto futures liquidations: enthusiasm of bulls dampened
The liquidations observed in the crypto market futures in the last 24 hours have helped shift investors’ bias from confident to hesitant, with over 400 million dollars of long positions being liquidated.
The “Liquidation Heatmap” by Coinglass clearly shows the results of liquidations, where losses have mainly affected BTC and ETH, and then focuses on the hottest tokens of the moment such as SOL and DOGE.
Overall in the last 24 hours, 128 thousand traders have seen their positions evaporate, with bullish bettors losing 324 million dollars, while bears are only negative by 80 million dollars.
The largest liquidation occurred on the ETH-USD market on OKX, where a single trader experienced a forced closure of a $7.48 million trade.
However, last night’s shake was not the most violent of the recent period, where liquidations have been a daily occurrence.
As always shown by Coinglass, which highlights the results of liquidations in recent months, from March onwards there has been a significantly more pronounced speculative activity by traders, triggering significant losses on both sides.
On March 5th in particular, over 1 billion futures positions were liquidated, most of which belonged to the bulls.
Even on March 19th we noticed similar results, with about 740 million dollars liquidated in the midst of a crypto market in the grip of crazy over leveraged.
The most important settlement levels to keep an eye on
Despite the recent dump, which has changed the dynamics of the crypto market, we can still hypothesize a recovery of prices and a return to the bull market, with the next liquidations that will be borne by the bears this time.
We notice indeed how even after such a price action, the funding rate of the futures remained positive, although all those who required excessive leverage were cut off.
For example, the “BTC OI-Weighted Funding Rate” is at 0.0112%, while “ETH OI-Weighted Funding Rate” shows 0.013%.
DOGE, SOL and WIF are recording a still high funding rate, but at rates that vary significantly depending on the reference broker.
It is also worth noting how overall even the open interest has remained at acceptable levels to suggest a bullish restart.
On Bitcoin, the total open derivative contracts have only decreased to 19 billion dollars, losing just 2 billion dollars from the highs reached in mid-March.
Now, for Bitcoin to return above 72,000 USD would be a godsend, with over 2.3 billion dollars in potential liquidations focusing on a narrow price range of just 200 dollars.
On the other hand, dropping below 63,000 USD, where we find hypothetical liquidations of 450 million dollars by the bulls, would increase the chances of a bearish continuation.
As for Ethereum, the key levels to watch are 3,700 USD, where positions worth 300 million are just waiting to be eaten by the market, and on the other side the key threshold of 3,000 USD where however we find only 100 million dollars of possible liquidations.
