The cryptocurrency market has experienced a major shakeup in recent days, with its total value decreasing by more than $110 billion. Total market capitalization fell from $2.47 trillion to $2.36 trillion, a decline of more than 4%. Bitcoin It fell below $64,000 and fell to $63,589. This downward trend was centered on decreasing trading volumes and increasing uncertainty.
Mixed Feelings Among Traders
While some traders believe that the general direction of the market remains upward, others are concerned that caution is warranted in the short term due to factors such as lack of trading volume and increased uncertainty, especially after the recent Bitcoin halving.
The period after Bitcoin’s last halving was marked by significant ups and downs. In March, Bitcoin reached an all-time high of $73,000. However, it later experienced several corrections, falling below $60,000 due to the impact of global geopolitical tensions. Despite intermittent relief rallies and volatility, Bitcoin is once again facing losses, raising concerns of a further downturn.
Important Sell Signs for Bitcoin
Analyst Ali Martinez identified two important sell signals for Bitcoin did. First, a death cross appeared between the 50 and 100 Simple Moving Average (SMA), which is a potential bearish signal.
Two sell signals were presented on the #Bitcoin 12-hour chart: A death cross between the 50 and 100 SMA and a red 9 candlestick from the TD Sequential.
if $BTC falls below $63,300, brace for possible dives to $61,000 or even $59,000. pic.twitter.com/24A3YtbgTb
NEWS CONTINUES BELOW— Ali (@ali_charts) April 25, 2024
Secondly, TD Sequential displayed a red 9 candlestick indicating a possible reversal in the trend.
Technical indicators paint a worrying picture for Bitcoin. The TD Sequential tool, known for predicting trend changes based on historical data, recently issued a sell signal on the 12-hour chart. Additionally, the emergence of a death cross formation on the same chart in which the short-term moving average falls below the long-term moving average also raises concerns.
Martinez’s analysis suggests that if Bitcoin falls below $63,300, it could fall to $61,000 or even $59,000, raising concerns about breaking the critical $60,000 support level.
On-chain analytics firm Kaiko attributed Bitcoin’s 6% decline in April to geopolitical unrest. While traditional safe-haven assets such as gold and the US Dollar rose amid market volatility, Bitcoin failed to capitalize on this advantage and questioned its resilience in the face of global uncertainty.
Despite its strong performance earlier in the year, Bitcoin has faced difficulties recently. Although it has increased by 52.22% since the beginning of the year, it has experienced a decrease of 10.17% last month. However, it recorded an increase of 3.57% on the weekly chart.
At the time of writing, Bitcoin is trading at $63,827 and has fallen 3.77% in the last 24 hours. Investors are monitoring the situation closely, worried about a potential cryptocurrency price drop.
