Bitcoin (BTC) Price Declines by 4.3% as Market Faces Widespread Collapse: Analysis and Outlook
The cryptocurrency market is experiencing a sharp decline as Bitcoin (BTC) has dropped by 4.3% over the past 24 hours, leading to a widespread collapse across the broader crypto market. This comes after a recent rebound that saw Bitcoin reclaim the $66,000 price territory on April 15, with the global crypto market cap surging to $2.384 trillion.
Despite the initial recovery, Bitcoin has since witnessed a pullback, trading at $63,250 at the time of writing. The market has lost over $79 billion in valuation, with the global crypto market cap currently at $2.243 trillion. The surge in selloffs has been a primary factor in this sudden downturn, with market participants rushing to exit at breakeven.
Increased trading activity has been observed, with total volume reaching $121 billion yesterday. This surge in volume typically indicates a rise in selloffs during a market downturn. Bitcoin derivatives volume has also increased by 10.31% in the last 24 hours to $98.1 billion, with a predominant bearish sentiment reflected in the long/short ratio.
Despite the upcoming halving event expected to reduce Bitcoin’s daily inflation rate, the prevailing bearish pressure has persisted. Crypto.com CEO Kris Marszalek has warned that this downturn may continue before the halving, which is slated for the next three days.
Exchanges have seen increased Bitcoin inflows, signaling a rise in selling pressure. Additionally, tensions surrounding the Iran-Israel conflict have not fully subsided, with reports suggesting potential retaliation from Israel.
For Bitcoin to shift from a bearish to a bullish sentiment, it would need to break above the 50-day EMA at $64,735. However, the asset faces resistance at $64,200, aligning with Fibonacci 0.236.
Stay updated on the latest developments in the cryptocurrency market by following us on Google News.