Crypto Market Downturn: Analyst Warnings and Market Mood Analysis
In the past 24 hours, the crypto market has taken a hit, losing over $110 billion in market value as the global crypto market cap dropped by over 4% to $2.36 trillion from $2.47 trillion. Bitcoin, the leading cryptocurrency, also saw a dip below $64,000, hitting a low of $63,589. This downturn has been attributed to low trading volumes and increased uncertainty in the market.
While some traders remain optimistic about the overall market trajectory, others are expressing concern about the lack of trading volumes and rising uncertainty, especially following the recent Bitcoin halving. Bitcoin has been experiencing significant fluctuations post-halving, with highs and lows causing volatility in the market.
Analyst Ali Martinez has highlighted two significant sell signals for Bitcoin: a death cross between the 50 and 100 SMA and a red 9 candlestick from the TD Sequential. These technical indicators are signaling potential trouble for Bitcoin, with Martinez’s analysis suggesting a possible drop to $61,000 or even $59,000 if Bitcoin falls below $63,300.
Kaiko, an on-chain analytical firm, has also noted that Bitcoin’s 6% drop in April was attributed to geopolitical turmoil. While traditional safe-haven assets like gold and the US Dollar rallied during this time, Bitcoin failed to capitalize on the market turbulence, raising concerns about its resilience amid global uncertainty.
Despite its strong performance earlier in the year, Bitcoin has faced challenges recently, with a decline of 10.17% in the last 30 days. However, it managed a 3.57% climb on the weekly chart. Currently trading at $63,827, Bitcoin has seen a 3.77% drop in the last 24 hours, leading investors to closely monitor the situation amid fears of a potential cryptocurrency price downturn.
