The cryptocurrency market did experience a tangible collapse last week. Judging by the market situation, many traders were caught off guard by the move, causing them to lose money. According to The Block platform, the last seven days brought numerous liquidations, i.e. forced closures of traders’ trading positions created with borrowed capital from exchanges. The total amount of liquidations amounted to $650 million.

As can be easily guessed, the losses here affected holders of long positions – that is, traders who were counting on the market to grow. Binance and OKX saw the largest volume of liquidations, with figures of $234 million and $197 million respectively.

New support level for Bitcoin

The Bitcoin chart is currently in search of a new support level, a line that could lead to a notable bounce in the asset’s price due to traders’ desire to buy in at a certain level. Bitcoin is trading around $27,350 this morning.

Cubic Analytics senior market analyst Caleb Franzen believes that the major cryptocurrency needs to consolidate above the line he marked on the chart to continue rising. Here’s a relevant rejoinder to what’s happening, along with an illustrative image.

Bitcoin has failed to break through and hold above the $27,820 zone in the form of the green range, which is the key level I discussed. In order for short-term momentum to change in favour of the bulls, the price needs to rise and stay above that range.

Traditionally, we should note that any comments from traders and analysts are their personal opinions. Respectively, experts' forecasts and their vision of what is happening can easily be wrong. Therefore, you should take these comments only as a possible scenario.

The Material Indicators platform’s Twitter account also noted another interesting feature: a wall of sell orders has formed in the trading stack on the exchanges to put pressure on the BTC price. In other words, the orders on the trading platform hint at a large number of people wanting to get rid of their own bitcoins.

Trader Mark Cullen also belongs to the camp of skeptics – he wrote on Twitter that a technical analysis pattern called a “bear flag” has formed on the Bitcoin chart. As previous such cases have shown, it signals that the asset’s price will continue to fall.

Trying to "catch knives" - that is, opening trading positions with the aim of catching a price bottom - may be too dangerous now, experts say. A market long will be less dangerous when BTC shows a clear rebound at one of the aforementioned levels.

What’s happening in macroeconomics

The main topic of discussion among economists this week is mainly corporate reports and mid-single-digit US economic data. The focus will be on the release of GDP and jobless claims data on April 27 and the March Personal Consumption Expenditure Index (PCE) a day later.

Then corporate earnings will continue to be released and on May 3 the Federal Open Market Committee (FOMC) will meet to decide on the next interest rate hike.

Fed Chairman Jerome Powell had earlier confirmed that the strength or lack of important interim macroeconomic data significantly influences this decision. Accordingly, markets are now in wait-and-see mode – their noticeable reaction is likely to be shown on the charts closer to early May.

Cryptocurrency traders record losses

According to analysts at Glassnode, there was a noticeable spike in the volume of bitcoins sent to exchanges last week. Most of these coins belong to short-term holders of the asset. According to Cointelegraph’s sources, Glassnode experts consider market participants who kept BTC in their wallets unmoved for less than 155 days as such.

Coinglass experts also reported local growth in BTC inflows to Binance. Only 21 thousand BTC were moved to the exchange last week.

Santiment analysts note that investors and traders have started selling their digital assets at a loss three times more often than before.

This is a clear sign of panic, as the crypto market’s behaviour last week came as a surprise to many. The panic may have also accelerated the local fall in the value of BTC.

A popular crypto analyst nicknamed Moustache believes that smart money is preparing for a new global bull run. This is usually defined as investors who hoard assets long before its price rises, meaning they act much smarter than novice traders. To prove his theory, he cites the global BTC trend and similarities in the traits of bullish cycles. Here is the corresponding image.

Meanwhile, the Fear and Greed Index, compiled by analysts at Alternative, has returned to neutral territory. Today it reaches 53 out of 100 points, indicating a simultaneous lack of greed among Bitcoin investors and strong fear.

In terms of crowd sentiment, the situation looks more like a pullback than a full-fledged trend reversal. It is to be hoped that soon we will see another renewal of the annual high of Bitcoin price, because so far the economic situation around the world is clearly conducive to that.


It seems that the cryptocurrency market now really depends on the events of next week. As noted earlier, US authorities are tentatively planning to raise the base rate above the current 5 per cent and "hold it there". This means that it is possible that the rate hike in May will be the last or one of the last. Well, the reversal of the rate situation will have a positive impact on risky assets and cryptocurrencies among others, because a decrease in its level will mean a decrease in the cost of credit and the general cheapening of money.


Follow what’s happening in the market in our crypto chat. There we will discuss other important developments that affect the decentralized asset industry in one way or another.

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