The Bitcoin price fell below $65,800 on April 2 after leveraged bull traders suffered over $130 million in losses, leading to a decline of 6% within a 12-hour period. This drop was primarily driven by negative movements in Bitcoin ETFs, resulting in a net outflow of $85.7 million on April 1. Grayscale's GBTC led the outflows, losing over $302 million according to Farside Investors' data.

Additionally, rapid liquidations in the derivatives markets further accelerated the decrease in the Bitcoin price. Over 140,290 traders had leveraged positions liquidated, totaling $437.6 million in the last 24 hours. Long traders experienced the most significant losses, with over $133.7 million being wiped out.

Despite this market downturn, Bitcoin's network fundamentals remain intact, and there is potential for a quick recovery. Fed Chair Jerome Powell's recent statements soothing recession fears could initiate a BTC price rebound before the upcoming Halving event on April 20.

The chart provided by Coinglass displays the liquidation volume and frequency across different assets and timeframes, showcasing the impact of this significant event on the market.

Whales holding billions in Bitcoin have shown resilience during the recent market turbulence, indicating confidence in a potential recovery above $70,000. As BTC price remains below the 30-day SMA of $68,171, the whales continue to hold their recent acquisitions, suggesting a positive outlook for the future.

To validate this positive forecast, BTC bulls need to prevent further decline below $65,000. A recovery phase could be imminent if over 861,890 addresses continue to hold onto their positions at an average price of $64,726. A return to the $70,000 price range could flip the markets bullish once again, although resistance may be encountered at $68,000 in the short term.