Bitcoin, the principal digital currency, saw a massive drop to $61,000 on April 17th, causing a considerable fall in the value of altcoins. This significant depreciation triggered a substantial sell-off within the cryptocurrency market. Popular altcoins like Ethereum, XRP, and Litecoin equally suffered drastic reductions.
The total capitalization of the cryptocurrency market tumbled rapidly, leading to a bout of panic selling among crypto investors. In the face of this market instability, prominent stakeholders known as ‘Bitcoin whales’, opted not to sell their investments due to their belief in Bitcoin’s long-term value potential.
Historically, Bitcoin’s value has typically remained low for a month after such price adjustments. This is according to Bitwise Asset Management. Consequently, substantial value increases have usually been noticed approximately a year after these events.
Bitcoin’s plunge incites altcoin sell-off
On the same day, bearish traders tried to push Bitcoin below the $60,775 support level. If they had succeeded, the BTC/USDT pair could potentially have tumbled towards the 50% Fibonacci retracement level at $58,017 or possibly further to the 61.8% retracement level at $54,298.
However, bullish traders were determined to maintain Bitcoin’s value above the essential support level, offering stiff resistance. This assertiveness illustrates the potential for BTC/USDT pair to scale towards, and perhaps surpass, its all-time high. Conversely, if the bearish traders had been successful, we could have witnessed a sharp decline in value, necessitating careful market monitoring.
Ether, Ethereum’s native cryptocurrency, slumped in value, falling from its 20-day exponential moving average of $3,301 on April 15 to below the $3,056 support level the next day. This decline sparked widespread concerns among investors who are now questioning the reasons for the drop.
Binance Coin also suffered a drop, falling below its 50-day simple moving average of $541 on April 17. Other altcoins like Solana and Ripple’s XRP, as well as leading cryptocurrencies like Ethereum and Cardano, recorded significant downtrends. This noticeable shift has prompted acute interest from market participants, who now speculate if this is just a momentary dip or the onset of a prolonged bear market.
