Bitcoin claws back $40K as 24-hour crypto liquidations near $500M

Bitcoin (BTC), which attempted to reclaim $40,000 support on April 12, after a troubled start to the week that saw BTC/USD reach three-week lows.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

Due to CPI data “Extraordinarily high”

Cointelegraph Markets Pro and TradingView data showed that the largest cryptocurrency bounced to $40,200 on Bitstamp, after it had fallen to $39,300 on April 11.

A bleed-out of tech stocks in particular has made Bitcoin look unappetizing in short time frames. Those who had been betting on bullish continuation were also left empty-handed.

Coinglass, an on-chain monitoring tool that monitors crypto trading, reports that the last 24 hours saw crypto traders lose $428 million in liquidated positions over long positions. This is the highest amount in a single day since Jan. 22, 22.

Chart of crypto liquidations. Source: Coinglass

William Clemente, Blockware’s lead insights analyst wrote that the rollover in tech was also affecting BTC in a Twitter thread.

“Whether I agree with this or not, the market seems to view BTC as high beta tech play, trading at an increasing correlation in the last month.”

These comments echo those made by Arthur Hayes (ex-CEO of BitMEX), who had predicted that BTC/USD would fall to $30,000 on Monday due to the macro setup.

The latest Consumer Price Index (CPI), due later in the day, added insult to injury for the US economy and associated sentiment. The March CPI readout, already at 40-years high, is expected to increase inflationary pressure since it will be the first CPI data made public since the beginning of the Russia-Ukraine conflict.

The White House is now warning about “extraordinarily high” inflation data. The March CPI print will likely be extremely ugly.
Dylan LeClair (@DylanLeClair_ April 11, 2022

CPI events have historically been known to cause volatility in crypto markets. This makes the April 11 publication time at 8:30 EST of CPI particularly important for traders.

Many were therefore considering the possibility of downward pressure decreasing once the data are made public.

Whale support is $27,000 of “max pain”.

Whalemap, an on-chain analytics platform, declared $27,000 the “maximum pain” level for the market by analysing support levels at large volume investors who had purchased BTC.

Related: Bitcoin prices drop to $39K but data shows that leverage traders are dreaming of $50K

Unfortunately, the $41,600 did not hold. It summarized it on Twitter as $38,400 being the closest on-chain support.

A graphic accompanying the whale positions showed that $41,600 was “should have” been held due to buyer interest.

BTC/USD chart showing support levels. Source: Whalemap/Twitter

Cointelegraph reported recently that some whales are spending less than $45,000 per month.

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https://cointelegraph.com/news/bitcoin-claws-back-40k-as-24-hour-crypto-liquidations-near-500m