Bitcoin fell more than 4% to retest the $68,000 support at the start of the second quarter.

Bitcoin fell more than 4.5% to a local low of $68,000 on April 1, and started the month in the red after recording seven consecutive months of green finishes.

The flash crash led to the liquidation of $319.43 million in the last 24 hours, with long positions accounting for the majority at $252.42 million.

There was some recovery in the last hour, but the immediate fallout left a huge number of traders in the doldrums. The drop comes after the flagship cryptocurrency rose as high as $71,500 over the weekend, closing the monthly candle at its highest price in history.

Based on CryptoSlate data, BTC was trading at a critical support level of $68,500 at press time.

Most cryptocurrency markets reflected the plunge, with Ethereum and Solana down 5.91% and 6.63% in the past 24 hours.

At press time, ETH is trading at $3434 and SOL is trading at $189.

market psychology

Trading sentiment remains cautious, with BTC/USD levels falling to their lowest since March 25th. Accordingly, traders should monitor support levels closely.

If continued selling pressure causes Bitcoin to fall below the 4-hour 200 moving average, it could retest $67,200.

Despite achieving a historic seventh consecutive green monthly close, the consensus is that the road to halving may not be a straight upward trajectory.

However, market sentiment indicates a strong belief that BTC bids will hit a new all-time high after the halving, evidenced by a brief drop below $69,000 before falling by over $150 million to $62,000.

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