Bitcoin (BTC) experienced a 4.3% decline within the last 24 hours, triggering a widespread downturn across the broader cryptocurrency market. This decline follows a recent recovery surge, prompting investors to liquidate their positions at breakeven levels.
Despite a notable rebound that pushed Bitcoin above the $66,000 mark on April 15, the cryptocurrency market swiftly reversed course. Bitcoin peaked at $66,867 before retracing to the upper range of $61,000, followed by a subsequent recovery attempt. However, as of the current writing, Bitcoin is trading at $63,250, marking a 4% decrease from the previous day’s high.
Consequently, the cryptocurrency market witnessed a significant loss of $79 billion in total valuation over the past 24 hours, bringing the global market cap down to $2.243 trillion. The sudden pullback can be attributed to intensified selling pressure as investors rushed to capitalize on the recent rebound.
Increased trading activity, reflected in a rise in total volume to $121 billion, indicates heightened market volatility and selling pressure during downturns. Moreover, Bitcoin derivatives volume surged by 10.31% to $98.1 billion, signaling a prevailing bearish sentiment among traders.
Despite anticipation surrounding the upcoming halving event, which typically supports Bitcoin’s price by reducing inflation rates, Crypto.com CEO Kris Marszalek cautioned that the current market downturn might persist. Additionally, heightened geopolitical tensions, particularly concerning the Iran-Israel conflict, contribute to market uncertainty.
Bitcoin faces significant resistance levels, particularly the 50-day Exponential Moving Average (EMA) at $64,735 and the $64,200 level aligned with Fibonacci 0.236. Breaking above these levels could signal a shift from bearish to bullish sentiment in the short term. However, increased Bitcoin inflows to exchanges suggest ongoing selling pressure, adding further uncertainty to the market outlook.