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Bitcoin Retraces, Plummets 8% as Middle East Tension Escalates

Bitcoin saw a more than 8% decline in value as tensions in the Middle East escalated. On April 13, Iran launched its much-anticipated attack on Israel. Reports also have it that Iran also implemented some form of cyber warfare.

With the threat of a looming World War III imminent, several stocks registered losses including S&P lost over 2%. This also affected the apex coin as it dropped from $67,146 to a low of $61,308 before rebounding.

The decrease also affects several altcoins. For example, ORDI lost over 23% in the last 24 hours. Major assets like Bitcoin forks like BSV also saw notable decreases. It dipped from $80 to a low of $56, representing an initial 28% decline. Currently trading at $65, the bulls are absorbing the dip.

The market bleed continues on the derivatives. Over the last 24 hours, traders lost almost $1 billion. 80% of the liquidated funds were from long positions. A total of $765 million was REKT on this position. On the other hand, bears also suffered small losses.

In the wake of the escalations, derivative traders lost over $700 million in the last four hours. The bulls also make up almost 90% of the total liquidation. Traders lost over $600 million on long positions.

The global cryptocurrency market also took a hit. For the second time in two days, it is seeing a significant decline. This time, it dipped from $2.40 trillion to $2.23 trillion, marking an almost 9% drop.

Nonetheless, at the time of writing, the bulls are absorbing the supply hike. Altcoins were showing signs of recovery. One such is Solana. The coin dropped to a low of $121 before it rebounded. The soaked up the supply shock and it is currently trading at $138.

Bitcoin Will Attempt $65k

In the coming days, the market will attempt to recover from the dip. Bitcoin will see strong trails to reclaim the $67k resistance.

However, indicators are showing no huge signs of an impending change in momentum. For example, the Moving Average Convergence Divergence continues its downtrend as the 12-day EMA continues its decline.

Gideon Geoffery