What caused the decline of cryptocurrency today? Bitcoin experiences a 4.3% loss in 24-hour trading
Bitcoin (BTC) experienced a 4.3% decline in the past 24 hours, leading to a widespread collapse in the broader crypto market as investors exit at breakeven following the recent recovery. The decline comes after a period of double-digit gains for multiple assets. On April 15, Bitcoin reclaimed the $66,000 price level, causing the global crypto market cap to surge to $2.384 trillion.
However, after reaching a high of $66,867, Bitcoin saw a subsequent collapse, dropping to the higher end of the $61,000 range before staging a recovery. Despite this recovery, Bitcoin is currently trading at $63,250, marking a 4% decline in the past 24 hours.
As a result of the market downturn, the crypto market lost over $79 billion in valuation, with the global crypto market cap currently standing at $2.243 trillion. The sudden pullback can be attributed to a surge in selloffs as investors rushed to exit the market at breakeven after the rebound.
Trading volume across the market increased to $121 billion, indicating a rise in trading activity. During market downturns, an increase in volume suggests more selloffs. Although there has been a slight drop, volume remains above $100 billion, currently at $112.7 billion.
Data from Coinglass confirms that Bitcoin derivatives volume has increased by 10.31% in the past 24 hours to $98.1 billion, with the long/short ratio at 0.9573. This indicates an increase in derivatives trades and a prevailing bearish sentiment.
Despite the upcoming halving event, which is expected to boost Bitcoin’s price by reducing the daily inflation rate, the bearish pressure persists. Crypto.com CEO Kris Marszalek warned that this downturn would continue before the halving, which is scheduled in the next three days.
Exchanges have also seen an increase in Bitcoin inflows, indicating a rise in selling pressure. Additionally, tensions surrounding the Iran-Israel conflict have not fully subsided, with reports suggesting that Israel plans to retaliate against the attack from Iran.
Currently, Bitcoin needs to break above the 50-day EMA at $64,735 to shift short-term sentiments from bearish to bullish. However, it would face strong resistance at $64,200, which aligns with the Fibonacci 0.236 level.
