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▲ Bitcoin (BTC) Crash / Gemini Generated Image ©
As peace talks in the Middle East falter and geopolitical uncertainty once again engulfs the market, the entire cryptocurrency market, including XRP (Ripple), has frozen. Bitcoin, the market leader, has been directly hit by a cascade of long position liquidations, showing a sharp decline.
According to CoinMarketCap, a cryptocurrency market tracker, on April 12 (local time), Bitcoin (BTC) fell by 1.83% over the past 24 hours, dropping to $71,490.05. This mirrors the overall cryptocurrency market's 1.55% decline and is interpreted as a result of the geopolitical setback—the collapse of ceasefire talks between the US and Iran—which stimulated strong selling sentiment across the market.
CoinDesk reported that negotiations between high-ranking US and Iranian officials in Pakistan failed to produce an extended ceasefire agreement. This reignited macroeconomic uncertainty, leading to capital flight from investors seeking to avoid risky assets, which in turn resulted in a general sell-off in the cryptocurrency market.
This downturn was exacerbated by a cascade of liquidations in the derivatives market, further widening the price drop. Over the past 24 hours, forced liquidations totaling $89.76 million occurred in the Bitcoin market, with long positions (bets on price increases) accounting for over 58% of this total. Leveraged positions, unable to withstand the rapid price changes, were forcibly liquidated, increasing downward pressure on the market.
From a technical analysis perspective, Bitcoin is currently testing its pivot point near $71,716. The Relative Strength Index (RSI) is at 32.17, indicating it has entered an oversold zone. If it can hold the key support level between $70,000 and $71,000, a technical rebound towards $73,000 could be expected. Conversely, if this support level breaks, there is a risk of a fall to $68,000. Particular caution is advised given the weekend market's thin liquidity, where even minor negative news can significantly amplify price volatility.
Ultimately, the direction of this downturn, caused by a combination of macroeconomic headwinds and the absorption of leveraged positions, depends on how strongly technical support levels are defended amidst thin liquidity over the weekend. Whether Bitcoin can recover and stabilize above its daily pivot point of $71,716 within the next 24 hours will be the primary indicator for assessing market stabilization efforts.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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