Liquidation Pressure Plummets by 86%... Cryptocurrency Market Moves Again

▲ Bitcoin, Cryptocurrency ©

Rather than the cryptocurrency market entering a strong bull run, it has entered a technical rebound phase as the oversold burden has eased.

According to CoinMarketCap, a cryptocurrency market data aggregator, on April 30 (local time), the total cryptocurrency market capitalization recorded $2.55 trillion, up 0.56% over 24 hours. This rebound is strongly characterized as a technical retracement following the recent correction, as the 7-day Relative Strength Index (RSI) dropped to 31, entering oversold territory.

The 24-hour Bitcoin (BTC) liquidation volume plummeting by 86% to $21.77 million also lowered selling pressure. As the burden of forced liquidations eased, the market naturally gained room for a rebound, but analysis suggests this is more akin to a temporary weakening of selling pressure rather than a strong influx of new buying interest.

Within the market, there was also a trend of funds concentrating on specific themes. The Binance Ecosystem sector rose by 0.92%, and DeSci-related Bio Protocol (BIO) surged by 27.41% on news of an upgrade. In the Artificial Intelligence (AI) theme, Bittensor (TAO) garnered attention, leading to selective rotation focused on high-risk themes.

The regulatory environment also contributed somewhat to sentiment. News of Japan's push for a cryptocurrency spot ETF by 2027 acted as a favorable backdrop. However, the overall market trend is still closer to a limited rebound, combining some high-beta themes and regulatory expectations, rather than a broad bull market.

The short-term turning point is $2.55 trillion. If the market holds this level, a retest of the $2.62 trillion high is possible, but if it breaks the $2.50 trillion Fibonacci support level, it could fall back to around $2.46 trillion. The high correlation of 67% with gold also indicates that this movement is a rebound linked to the macro environment rather than an independent rally unique to cryptocurrencies.

*Disclaimer: This article is for investment reference purposes, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*