Bitcoin finds support slightly above $60,000, possibly giving altcoins the green light to move higher in the short term.
After staying range bound for a large part of the week, Bitcoin (BTC) plummeted on April 12 and April 13. The fall resulted in cryptocurrency liquidations worth about $2.5 billion, with more long than short liquidations. The fall has dealt a severe blow to the short-term leveraged long positions that expected the rally to continue leading up to and after the Bitcoin halving.
Bitcoin’s fall has severely affected the altcoins, with some in the top 20 cryptocurrencies by market capitalization falling roughly 20%. That sent Bitcoin’s market cap dominance to 56.3% on April 12, the highest level in three years.
Although Bitcoin’s fall has rattled the short-term traders, a positive sign is that the price has not even broken below the crucial $60,000 support. This suggests that the fall is a normal pullback in a bull phase. Traders need to remain cautious, but there doesn’t seem to be a reason for panic.
