$500M Gone in Days! Market Witnesses Largest Bitcoin Liquidation, Analysts Advise Caution!

It is turning out to be a bitter week for Bitcoin investors as the cryptocurrency’s price plunged at the beginning. This led to the largest Bitcoin liquidation event of the ongoing bull market. On Sunday, April 6, over 7,500 BTC worth more than $500 million were liquidated across major exchanges. Given that, the Bitcoin price dived headfirst from $83,000 to $74,000. The aftermath left Bitcoin investors reeling, with the market confidence shaken.

Unprecedented Liquidation Event Leaves Market in Shock

Analysts have described this Bitcoin liquidation as the most significant one since the bull rally began in 2023. The sharp drop in the Bitcoin price on spot markets forced leveraged traders into panic selloffs. This worsened Bitcoin’s downward spiral amid already bearish market conditions. While similar sell-offs have occurred in the past few years, they have not been of the magnitude of this week’s crash.

The biggest Bitcoin long liquidation event of this bull cycle

“On April 6, approximately 7,500 Bitcoin in long positions were liquidated, marking the biggest single-day long wipeout of the entire bull run so far.” – By @Darkfost_Coc

Read more https://t.co/eqW2JE8TWD pic.twitter.com/IEthwRDRVz

— CryptoQuant.com (@cryptoquant_com) April 9, 2025

DarkFrost, an analyst at CryptoQuant, linked this volatility to the concerns popping up over U.S. President Donald Trump’s economic policies. His imposition of retaliatory tariffs has led to increased financial uncertainty, which has affected markets around the world. “This was a wake-up call for traders relying on leverage during unpredictable market conditions,” Darkfost commented. Adding to this chaotic situation, reports of U.S. stocks suffering multi-trillion-dollar losses recently have also surfaced. 

Analysts Issue Warnings Amid Uncertainty

Crypto experts have advised traders to be cautious in these testing times. Leveraged or borrowed positions have proved to be risky amid the Bitcoin liquidations, while investors look to cut their losses. CryptoQuant founder Ki Young Ju noted that safe stores-of-value like gold are outperforming Bitcoin during such conditions. Gold has risen by 11% since January, while Bitcoin has had a disastrous Q1. 

Too many tariff experts on X playing 6D chess.

Uncertainty fuels safe-haven demand. Gold is up 11% since Trump’s comeback, #Bitcoin down 25%.

Bad news: BTC isn’t digital gold yet.
Good news: It’ll eat gold’s $20T cap. It's just $1.5T now.

— Ki Young Ju (@ki_young_ju) April 9, 2025

Despite the short-term challenges, Ju remains optimistic about Bitcoin’s growth potential to rival gold’s $20 trillion market cap. As of now, the Bitcoin price has recovered to $83K. So, let’s take a quick peek at Bitcoin’s price performance in recent times. 

BTC Price Analysis: Sustained Recovery Ensues, Bitcoin Hangs Close to $83k

After the Black Monday crash, Bitcoin has been able to make an impressive recovery. While in the previous days, Bitcoin’s progress had stalled around the $79,000 level, today marks a critical day as Bitcoin spiked to $83K and has been maintaining that price level. Yesterday’s Bitcoin price action began with a narrow trading range in the works. With the $77,700 resistance in place, Bitcoin found early stable support at $74,600. As it fell to the support level, oversold conditions were observed, as the trend reversed and Bitcoin ascended. By 14:15 UTC, the Bitcoin price broke that resistance with a slight correction on the way.

Chart 1 – Published on TradingView, April 10, 2025

But a golden cross formed at 16:00 UTC, instigating a momentous upward spike as Bitcoin went from $78,290 to $82,990 within an hour. The price faced some correction, but the buying pressure persisted, and Bitcoin went further up to face rejection at $83,650. It failed to break across, and an extended downtrend followed, leading Bitcoin to a support of $81,530. Since then, Bitcoin has attempted upward movements, but has lacked the buying trend to support it. 

BTC Price Prediction: Will the $81k Support Hold Bitcoin?

While bullish sentiments prevail in the market, Bitcoin price as of now fails to validate that fact. For the past few hours, Bitcoin has been attempting to break out upward, but any positive advances are leading to near overbought levels on the RSI. While Bitcoin does have stable support close by, it seems like it is poised to drop before we see any meaningful uptrend. If Bitcoin drops the support, it would like to keep the new support as close to $80K as possible. If further Bitcoin liquidations occur, we could be looking at a possible pullback to the $70k range.

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