The crypto market was rocked this week as Bitcoin experienced its largest liquidation event of the current bull run, wiping out over $500 million in leveraged positions. The sharp price drop left traders rattled and analysts urging caution amid rising economic uncertainty.
A Week of Mayhem: $500M Liquidated in a Day
On Sunday, April 6, more than 7,500 BTC—worth over $500 million—were liquidated across major exchanges. The Bitcoin price plummeted from $83,000 to $74,000, triggering panic among leveraged traders. This rapid sell-off marked the biggest single-day liquidation since Bitcoin’s 2023 bull rally began.
According to CryptoQuant analyst DarkFrost, the collapse was fuelled by macroeconomic uncertainty tied to U.S. President Donald Trump’s latest retaliatory tariffs, which have rattled global markets. Compounding the chaos, U.S. stock markets reportedly saw multi-trillion-dollar losses, adding to the bearish sentiment.
Analysts Urge Traders to Tread Carefully
In the wake of the crash, crypto experts have issued stern warnings to avoid excessive leverage. Ki Young Ju, founder of CryptoQuant, pointed out that traditional safe havens like gold have outperformed Bitcoin during these unstable periods. Gold has seen an 11% rise since January, while Bitcoin struggled through a volatile Q1.
Despite the short-term pain, Ju remains bullish on Bitcoin’s long-term trajectory, suggesting it could eventually challenge gold’s $20 trillion market cap. However, for now, caution is the name of the game.
Price Recovers to $83K but Resistance Persists
Following the sell-off, Bitcoin staged an impressive rebound, climbing back to $83,000. The recovery began as BTC found strong support at $74,600, bouncing from oversold conditions. A golden cross—a bullish technical signal—formed around 16:00 UTC, causing a rapid surge from $78,290 to $82,990 within an hour.
However, Bitcoin faced rejection at $83,650 and slid back to a support level of $81,530. Since then, price action has remained indecisive, lacking the momentum to sustain a clear breakout.
BTC Outlook: Eyes on $81K Support Zone
While optimism lingers, Bitcoin’s recent attempts to climb higher have been met with resistance. The Relative Strength Index (RSI) is approaching overbought territory, hinting that another pullback could be on the cards.
Currently, BTC is holding above $81K, a crucial short-term support. If this level fails, Bitcoin may test lower levels, possibly dipping back into the $70K range—especially if further liquidations occur. Conversely, a sustained hold above $81K could set the stage for another push past the $83K resistance.
