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

A person holding a sign Bitcoin

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

Incoming CPI data is set to shock markets, while Bitcoin traders are eyeing the event as a potential “short-term bounce” catalyst.

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

Bitcoin (BTC) attempted to reclaim $40,000 as support on April 12 after a troubling start to the week saw BTC/USD hit three-week lows.

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

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

“Extraordinarily elevated” CPI data due

Data from Cointelegraph Markets Pro and TradingView showed the largest cryptocurrency bouncing to $40,200 on Bitstamp on April 11 after falling to just $39,300.

Spurred on by a bleed-out in tech stocks, in particular, Bitcoin looked decidedly unappetizing on short timeframes, and those previously betting on bullish continuation were left empty-handed.

According to on-chain monitoring resource Coinglass, the past 24 hours cost crypto traders a total of $428 million in liquidated long positions — the most in a day since Jan. 22.

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

Crypto liquidations chart. Source: Coinglass

“This roll over in tech is effecting BTC as well,” Blockware lead insights analyst William Clemente wrote in a Twitter thread on the current climate.

CPI events have historically tended to induce short-term volatility in crypto markets, making the April 11 publication time of 8:30 am EST of particular importance for traders.

Some, therefore, were considering the odds of downside pressure easing once the data is made public.

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

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

[$41,600 unfortunately did not hold. $38,400 is the new closest on-chain support,” it summarized on Twitter.

An accompanying graphic showing whale positions nonetheless showed that $41,600 “should have” held thanks to buyer interest.

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

As Cointelegraph recently reported, meanwhile, some whales have been filling their bags below $45,000.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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