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Bitcoin was trading 16% below its ATH recorded in March.
Further downsides could be potentially dangerous for the broader market.
As an experienced financial analyst, I’ve seen my fair share of market volatility, and the current state of Bitcoin is no exception. The recent sell-off, with Bitcoin trading 16% below its all-time high (ATH) recorded in March, has left many investors feeling uneasy.
During U.S. trading on Tuesday, Bitcoin’s price dipped beneath $60,000, marking an extension of its losing streak and representing one of the cryptocurrency market’s poorest performing months in recent history.
Bloody April
According to information from CoinMarketCap, the largest digital asset in the world experienced a decline of approximately 5% over the past 24 hours. Conclusively, its value finished the month of April with a decrease of around 14.5%.
At present, the price had dipped below $58,000, representing a 16% decrease from its previous record high of around $70,000 that was reached in March.
The slump rippled across the market, causing other coins to trade in the red.
Approximately $360 million in trading positions were terminated in the past day, according to AMBCrypto’s analysis of information from Coinglass. Long positions comprised around 85% of the overall liquidations.
About $107 million in Bitcoin liquidations was observed in the 24-hour period.
What is causing negativity?
The weak opening day performance of recently launched spot ETFs in Hong Kong led to significant selling off. These ETFs managed to generate only around $11 million in trading volume during their debut on the Hong Kong Stock Exchange.
This was a fraction of what U.S.-based spot ETFs clocked in their debut in January.
As a crypto investor keeping a close eye on the market trends, I’ve noticed that U.S. spot ETFs have been facing some turbulence lately. Based on SoSo Value data, these ETFs experienced net outflows amounting to $161 million on Tuesday, marking the fifth consecutive day of withdrawals.
Additionally, the unexpectedly high inflation figures have led investors to believe that the Federal Reserve will maintain current interest rates at the forthcoming FOMC meeting. Consequently, they are withdrawing funds from riskier assets.
What to expect next?
Shivam Thakral, CEO of Indian cryptocurrency exchange BuyUcoin talked about the significance of Bitcoin’s current price levels in a statement shared with AMBCrypto.
As a researcher studying the cryptocurrency market, I’ve observed that Bitcoin has recently encountered resistance at the key support levels of $58,000 to $60,000. The significance of this price range lies in its potential impact on altcoins in the near term. Should Bitcoin fail to hold onto these levels, altcoins may be vulnerable to additional declines.
As the level of fear and uncertainty (FUD) continues to rise in the crypto market, technical analyst Ali Martinez believes that this could lead to a local market bottom. In response to the current greedy market conditions, Martinez emphasized the importance of additional fear for a sustainable market rebound.
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2024-05-01 12:07