Bitcoin steals $ 40K back as 24-hour crypto liquidations close to $ 500M

Bitcoin (BTC) tried to recover $ 40,000 in support on April 12, after a difficult start to the week saw BTC / USD low for three weeks.

BTC / USD 1-hour candlestick chart (bitstamp). Source: TradingView

“Extraordinarily increased” CPI data due

Data from Cointelegraph Markets Pro and TradingView showed that the largest crypto-currency on Bitstamp jumped to $ 40,200 on Tuesday after falling to just $ 39,300.

Encouraged by a surge in mainly technical stocks, Bitcoin certainly looked unappetizing on short time frames, and those who had previously bet on bullish continuation were left with empty hands.

According to on-chain oversight source Coinglass, over the past 24 hours, crypto traders have spent a total of $ 428 million in liquidated long positions – the most in a day since Jan. 22.

Crypto-liquidation chart. Source: Coinglass

“This roll-over in tech is also affecting BTC,” Blockware lead analyst William Clemente wrote in a Twitter thread about the current climate.

“Whether I agree or not, the market seems to view BTC as a high beta game on tech, trading with an increasing correlation over the last month.”

The comments echoed those of former BitMEX CEO Arthur Hayes, who on Monday predicted BTC / USD dipping to $ 30,000 as a result of the macro setup.

Adding insult to injury to the U.S. economy and associated sentiment, meanwhile, was the latest Consumer Price Index (CPI) print later in the day. Already at a 40-year high, the March reading is tipped to boost inflationary pressures as the first CPI data published since the start of the war between Russia and Ukraine.

CPI events have historically tended to induce short-term volatility in cryptocurrencies, making Tuesday’s 8:30 a.m. Eastern time of particular importance to traders.

So some were consider The chance of the downward pressure being reduced when the data is made public.

Whale support means $ 27,000 is “max pain”

Analysis of support levels where investors had bought large volumes of BTC, meanwhile, fellow on-chain analytics platform Whalemap declared $ 27,000 as the “max pain” point for the market.

Related: Bitcoin price drops to $ 39K, but data shows leverage traders dream of $ 50K

“$ 41,600 unfortunately not held. $ 38,400 is the new closest on-chain support,” it said summarized on Twitter.

However, an accompanying graph showing whale positions shows that $ 41,600 “should have” held thanks to buyer interest.

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

As Cointelegraph reported, meanwhile, some whales have filled their suitcases under $ 45,000.

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