The month of April has turned out to be a massive bear trap for the markets, as the bulls are constantly failing to defend the immediate lower support. The Bitcoin price slumped by nearly 8% during the previous trading day, due to which the traders are experiencing FUD to some extent. Due to this, the markets are expected to record another bearish weekly close if the BTC price fails to sustain above the key support zone.
The crypto market tumbled down during the last trading day as the risk-off sentiment circulated within the space as geopolitical risks hovered over the space. While BTC dropped close to $65,000, the Ethereum price was close to 12% while holding above $3100. Besides, altcoins like Cardano (ADA), Avalanche (AVAX), Bitcoin Cash (BCH), Filecoin (FIL), Aptos (APT), etc. and a few more experienced a huge pullback of over 10%.
The pullback is believed to have been triggered by the largest leverage washout in a month, which involved liquidating over $850 million of derivatives across all markets. With this, nearly $770 million was lost, which was heavily impacted by the recent plunge.
Along with cryptos, the broader markets also experienced a notable drop including Gold, and the S&P 500. One of the main reasons behind the plunge is speculated to be the geopolitical tensions between Iran and Israel, as a major update is expected in the next 48 hours. This has made investors cautious, leading to a sell-off in various markets, including cryptos.
Read Also : Bitcoin Halving will fuel These Major Altcoins – 2x-5x Profits Expected!
In such volatile conditions, knee-jerk reactions may emerge but it is very important to stay level-headed. Although it is an alarming situation instead of panicking, it can be considered as a buying opportunity and accumulate promising gems in the crypto space.