Bitcoin price began the third week of April on a slippery note, down over 2.3 percent to trade around $29.5k during the early New York trading session. More than 83 percent of Bitcoin longs had been liquidated with over $34 million rekt in the past 24 hours.
According to on-chain data from Coinglass, more than 3,800 Bitcoins have been deposited in the largest centralized crypto exchange Binance in the past 24 hours, perhaps signaling a bearish outlook.
Why is Bitcoin Price Dropping?
According to on-chain analytics platform Santiment, the top reason why Bitcoin dropped on Monday was due to increased FOMO traders. Santiment analysts have indicated that there is a direct correlation between the fear of missing out (FOMO) at its peak and prices moving in the opposite direction of the crowds’ expectations.
Notably, Santiment identified a general bullish stance from most crypto YouTube influencers as Bitcoin topped $31k. As a result, crypto cash flow has been observed entering the altcoin market since the Ethereum Shanghai upgrade happened last week.
Bitcoin’s price bounced back from a significant resistance level of around $31k. Despite today’s decline, Bitcoin price is still in a rising trend on the higher time frame with higher highs and higher lows perfectly respected. According to veteran crypto trader Michael van de Poppe, Bitcoin price is likely to consolidate around current levels in the coming days.
However, the analyst insisted that a reclaim of $29.8k would trigger a short squeeze to new highs.
Meanwhile, Bitcoin’s dominance declined below 47 percent, perhaps signaling the onset of the altcoin season. Additionally, the altcoin market did not experience a heightened sell-off like that of Bitcoin on Monday.