"Long Positions Worth $225 Million Evaporate"...Bitcoin, $82,500 is the Real Decisive Point

▲ Bitcoin, Cryptocurrency

As the US April Consumer Price Index came out higher than expected, major cryptocurrencies showed mixed movements. Bitcoin (BTC) and Dogecoin (DOGE) showed relatively limited movement, while Ethereum (ETH), XRP, and Solana (SOL) declined. The overall market reflected both inflation pressure and weakened expectations for interest rate cuts.

Benzinga reported on the 12th that major cryptocurrencies showed a sluggish trend along with major stock indices due to the impact of the rise in the US April Consumer Price Index. Bitcoin fell below $80,000 during the day but recovered some of its losses late in the evening, while Ethereum failed to break past the $2,300 resistance. XRP also traded in bearish territory.

According to 24-hour price changes compiled by Benzinga as of 9:15 PM EDT, Bitcoin fell by 0.59%, Ethereum by 1.62%. XRP dropped by 2.15%, and Solana by 2.26%. In contrast, Dogecoin rose by 0.08%, maintaining a flat trend.

Large-scale liquidations occurred in the derivatives market. According to Coinglass data, over $275 million worth of positions were liquidated in the past 24 hours, with long position liquidations alone reaching $225 million. Bitcoin's open interest increased by approximately 1% in the last 24 hours. The trend of increasing open interest amid sideways price movement suggests that new positions are building up, which is interpreted as a factor that could increase the likelihood of a future breakout.

Fear sentiment reappeared in the Crypto Fear & Greed Index. The total cryptocurrency market capitalization decreased by 1.04% in the last 24 hours, recording $2.69 trillion. Cryptocurrency-related stocks also showed weakness, with Strategy and Bitmine Immersion Technologies closing down 5.88% and 5.86%, respectively.

The stock market could not escape the inflation shock either. The S&P 500 closed down 0.16% at 7,400.96, and the tech-heavy Nasdaq Composite Index finished trading down 0.71% at 26,088.20. The Dow Jones Industrial Average closed up 56.09 points, or 0.11%, at 49,760.56. Benzinga reported that the Consumer Price Index recorded its highest figure in three years, weakening expectations for interest rate cuts this year.

Cryptocurrency analyst Ali Martinez analyzed that aggressive long positions accumulating on futures exchanges have created liquidation barriers for Bitcoin in the $75,000, $73,000, and $70,000 ranges. He stated that if Bitcoin fails to quickly turn $82,500 into a support level, the market could test lower price points to clear out leverage.

Michaël van de Poppe assessed that there are no signs of fatigue in Bitcoin. He explained that buying pressure continues to flow in with every dip, and to confirm if the market has truly ended its upward trend, one must first observe whether resistance levels are broken. He suggested that if resistance is broken, Bitcoin could target the $86,000 to $90,000 range within 2-3 weeks.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*