Bitcoin’s Achilles’ Heel: April’s First Week

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Bitcoin’s Volatile Start to April

Bitcoin ended March on a high note, reaching its highest monthly and quarterly closing prices above $70,000. The leading cryptocurrency has shown impressive growth in 2024, with a year-to-date rally of over 57%. This surge has been fueled by increasing institutional adoption and growing interest from investors.

However, the start of the new quarter brought a sudden downturn for Bitcoin. On April 1, the digital asset fell to $69,000, leading to over $218 million in liquidations across the cryptocurrency market in the past 24 hours, according to data from Coinglass.

Understanding Liquidations in the Cryptocurrency Market

When a trader’s leveraged position on an exchange is closed due to a partial or total loss of the trader’s initial margin, it is referred to as a liquidation. Coinglass data reveals that out of the $218 million liquidated, $151 million was related to long positions being wiped out, while the remaining amount came from liquidated short positions.

Despite the recent dip, Bitcoin is currently down only 2.4% in the 14th week of 2024. Interestingly, historical data indicates that this particular week has traditionally been the worst performing period for Bitcoin throughout the year. Since 2013, Bitcoin has seen an average loss of 4.75% during the 14th week, making it consistently the least favorable week for the cryptocurrency. The majority of these negative returns were observed between 2013 and 2015.

Bitcoin’s Achilles’ Heel

Analysts point to historical data that highlights the first week of April as Bitcoin’s “Achilles’ heel.” This period has historically been challenging for Bitcoin, with the cryptocurrency experiencing notable losses during this timeframe. Despite the overall positive trend in recent years, April’s first week remains a challenging period for Bitcoin investors and traders.

See also
Bitcoin Adoption Thrives in Brazilian Tourist Cities

In conclusion, while Bitcoin has made significant strides in recent months, the cryptocurrency market continues to exhibit volatility, as evidenced by the sudden downturn at the beginning of April. Understanding historical trends and market dynamics can provide valuable insights for investors looking to navigate the ever-changing landscape of the cryptocurrency market.

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About Post Author

Chris Jones

Hey there! 👋 I'm Chris, 34 yo from Toronto (CA), I'm a journalist with a PhD in journalism and mass communication. For 5 years, I worked for some local publications as an envoy and reporter. Today, I work as 'content publisher' for InformOverload. 📰🌐 Passionate about global news, I cover a wide range of topics including technology, business, healthcare, sports, finance, and more. If you want to know more or interact with me, visit my social channels, or send me a message.
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