Bitcoin (BTC) has experienced a massive dump on early Sunday morning (April 18, 2021). The crypto king dropped close to $10,000 in price from around $60,000 to a low of $50,900 (Binance). The level of support did hold and not break further to the downside, but no one is out of the woods yet. This also created a domino effect, which is quite expected, with the rest of the cryptocurrency market. The prices of Ethereum (ETH), Binance Coin (BNB), XRP, and other altcoins dropped along with BTC. ETH saw a total of $1.16 Billion in losses, while XRP losses totaled $496 Million. Traders who wanted to cut their losses exited to stablecoins like USDT and USDC.It was leveraged traders who suffered the most, according to reports. 1 million trader accounts lost a total of $10 Billion from liquidations as a result of the deep pullback. Most of the liquidations were long positions on BTC using leverage. The aftermath was bloody across the cryptosphere, and many crypto influencers and enthusiasts wanted to know the reason why prices suddenly plunged. If you are new to the space, you would be the most curious, but those who have been in crypto know that crashes like these occur frequently and without any warning.Unless you are an experienced trader with enough capital, leveraged trading should be avoided. When you borrow capital from brokerages or exchanges to trade, you must pay it back. Establishing a position with BTC, whether long or short, is how traders use leverage. The problem is if things don’t go their way, it will mean a loss and paying back what needs to be covered. The trade is liquidated when it equals the loss of that position. Traders who are bullish can establish a long position in the hope that their leverage…