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Bitcoin Tumbles Below $60K, Ether Under $3K; Correction Not Over, Says Strategist

Large bitcoin investors haven't started to buy the dip yet, suggesting that the correction may continue for a while, an LMAX Group strategist noted.

Updated Apr 17, 2024, 4:47 p.m. Published Apr 17, 2024, 3:42 p.m.
Bitcoin (BTC) price on April 17 (CoinDesk)
Bitcoin (BTC) price on April 17 (CoinDesk)
  • Bitcoin dipped to $59,900 for the first time since early March as cryptocurrencies slipped Wednesday.
  • Order book data on key spot exchanges shows demand below $60,000, which could halt the decline.
  • The crucial support level for BTC to watch is $59,000, LMAX's Kruger said.

Bitcoin {{BTC}} has given up the entirety of its bounce from Saturday's panicky selloff, plunging to under the $60,000 level in the morning hours of the U.S. trading session Wednesday.

After earlier Wednesday recovering above $64,000, bitcoin slipped to as low as $59,900, down more than 3% over the past 24 hours and its weakest price since early March. At press time, it was trading at $60,200.

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Ether {{ETH}}, the second-largest crypto asset by market capitalization, tumbled below $3,000 declining 2.5% over the same period.

The weakness echoed through most crypto markets, with all CoinDesk Market Index (CMI) sectors being in the red, while the broad-market CoinDesk 20 Index lost 1.8%.

CoinDesk Market Index (CMI) sector performances (CoinDesk)
CoinDesk Market Index (CMI) sector performances (CoinDesk)

The spot market order book for BTC-USDT on crypto exchange Binance, the most liquid trading pair, shows bids clustered below $60,000, outweighing sale orders. This indicates strong demand below that level that could halt further price decline at least in the short term.

Bitcoin buy (left) and sell (right) orders on major spot exchanges excluding Binance (Bitcoinity)
Bitcoin buy (left) and sell (right) orders on major spot exchanges excluding Binance (Bitcoinity)

Today's decline affirmed that cryptocurrencies are going through a cool-off phase after a multi-month rally that peaked last month. Bitcoin since has lost more than 15% from its latest all-time high, while some altcoins pulled back 40%-50% from their recent tops, which isn't out of ordinary of previous crypto bull market pullbacks, Glassnode data showed.

Read more: Is the Bitcoin Rally Over? Reasons to Stay Bullish on BTC Despite Correction

Bitcoin investor behavior suggests that the market weakness could continue for a while as large investors haven't started to buy the dip yet at current prices, Joel Kruger, market strategist at LMAX Group, said in a Wednesday market update.

"The latest blockchain data shows large holders of bitcoin holding off on increasing exposure into the current dip, which suggests we could still see some more weakness or consolidation before bitcoin is ready to turn back up," Kruger said.

The crucial technical level to watch for BTC is $59,000, referring to a significant support zone where prices rebounded twice through March, he added.

"If bitcoin can hold above this level, it keeps the direct focus on that next push to a fresh record high and towards $100,000," Kruger said. "If on the other hand we see more downside pressure that translates to a breakdown below $59,000, this will delay the short-term bullish outlook and open the door for a more meaningful correction into the $45,0000-50,000 area."

UPDATE (April 17, 16:11 UTC): Adds order book data.

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Exchange Review - March 2025

Exchange Review March 2025

CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.

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Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.

  • Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
  • Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions. 
  • Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.

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Consensus 2025: Zak Folkman, Eric Trump

Dek: This article is created to test tags being added to image overlays

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  • Ethena's USDe becomes fifth stablecoin to surpass $10 billion market cap in just 609 days, while Tether's dominance continues to slip.