Why is the Crypto Market Down Today? Bitcoin Sees a 4.3% Drop in 24-Hour Trading
Bitcoin (BTC) has experienced a decline of 4.3% in the past 24 hours, leading to a widespread market slump as investors take profits amidst the recent recovery. This sharp drop follows a period of significant gains, where Bitcoin breached the $66,000 price level on April 15 and the global crypto market cap reached $2.384 trillion.
However, after reaching a high of $66,867, Bitcoin saw a subsequent downturn, briefly falling below the $61,000 threshold before recovering from this level. Despite the recovery, Bitcoin’s price has dropped by 4% in the last 24 hours and is currently trading at $63,250.
As a result of this pullback, the overall crypto market has lost over $79 billion in valuation, with the global market cap now at $2.243 trillion. The primary factor contributing to this sudden decline is an increase in selling pressure as market participants rushed to exit the market at breakeven following the rebound.
Trading volume across the market also saw an uptick, reaching $121 billion, indicating a rise in selling activity. Despite a slight decrease, trading volume remains above the $100 billion mark, currently standing at $112.7 billion.
Data from Coinglass confirms a 10.31% increase in Bitcoin derivatives volume over the last 24 hours, amounting to $98.1 billion, with the long/short ratio indicating a prevailing bearish sentiment. These increased derivatives trades coincide with the overall downturn in the market.
Despite the upcoming halving event, which typically boosts Bitcoin’s price by reducing the daily inflation rate, the current bearish pressure has persisted. Crypto.com CEO Kris Marszalek even warned that the downturn would persist until the halving, which is slated to occur in the next three days.
Furthermore, increased Bitcoin inflows into exchanges suggest a rise in selling pressure. Additionally, the tension surrounding the Iran-Israel conflict has not fully abated, with reports indicating that Israel plans to retaliate against Iran’s attack.
For Bitcoin to shift from a bearish to a bullish sentiment in the short term, it would need to break above the 50-day EMA at $64,735. However, strong resistance awaits at $64,200, aligned with the Fibonacci 0.236 level.
While the market experiences this downturn, it’s essential to remember that cryptocurrency markets are highly volatile and subject to rapid fluctuations. Investors should carefully monitor market conditions and be prepared for both ups and downs.