Key Points
- Bitcoin (BTC) has experienced a 4.3% decline, leading to a wider crypto market collapse.
- The global crypto market cap has dropped by over $79 billion in the past 24 hours.
Bitcoin (BTC) has seen a 4.3% decrease in the last 24 hours, contributing to a broader collapse in the cryptocurrency market. This drop has been triggered by investors exiting the market at break-even points after a recent recovery.
Market Decline After Rebound
The cryptocurrency market had recently seen a sharp increase, with many assets recording significant gains. Bitcoin had reclaimed its value of $66,000 on April 15, leading to a surge in the global crypto market cap to $2.384 trillion.
However, following a high of $66,867, Bitcoin experienced a subsequent drop, falling to the higher end of the $61,000 range before recovering. Despite this recovery, Bitcoin saw a 4% decrease in the last 24 hours and is currently trading at $63,250.
Market Repercussions
As a result, the crypto market has lost more than $79 billion in valuation in the past day, with the global crypto market cap now at $2.243 trillion. This sudden pullback is largely due to an increase in sell-offs, as market participants rushed to exit the market at breakeven after the rebound.
Total volume across the market rose to $121 billion yesterday, indicating increased trading activity. Despite a slight drop, volume remains above the $100 billion mark, currently standing at $112.7 billion.
Data from Coinglass confirms that Bitcoin derivatives volume has risen by 10.31% in the last 24 hours to $98.1 billion, with the long/short ratio at 0.9573. This suggests an increase in derivatives trades and a predominantly bearish sentiment.
Despite the upcoming halving event, which is expected to boost Bitcoin’s price by reducing the daily inflation rate, bearish pressure continues. Crypto.com CEO Kris Marszalek has warned that this downturn would continue before the halving, which is due to take place in the next three days.
Exchanges have also seen an increase in Bitcoin inflows, indicating a rise in selling pressure. Furthermore, the ongoing tension surrounding the Iran-Israel conflict continues to unsettle the market.
Currently, for a shift in short-term sentiments from bearish to bullish, Bitcoin needs to break above the 50-day EMA at $64,735. However, the asset is likely to face strong resistance at $64,200, which aligns with the Fibonacci 0.236.
