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Why are cryptocurrencies falling today? Bitcoin loses 4.3% in 24-hour trading
Bitcoin (Bitcoin) has fallen by 4.3% in the past 24 hours, causing a widespread collapse across the cryptocurrency market as a whole, as investors exit the market at break-even in the wake of the recent recovery push.
The cryptocurrency market is witnessing a sharp decline after the latest rebound which saw several assets register double-digit gains. Bitcoin reclaimed the price reached $66,000 on April 15, with the global cryptocurrency market capitalization rising to $2.384 trillion.
BTC Price – April 16 | Source: Commercial View
However, following yesterday’s high of $66,867, BTC witnessed a subsequent collapse, falling into the higher spectrum of the $61,000 mark before staging a recovery from this level. Despite the push above this level, Bitcoin is down 4% over the past 24 hours, trading at $63,250 at the time of writing.
As a result, the cryptocurrency market has lost over $79 billion in valuation over the past day, with the global cryptocurrency market capitalization currently standing at $2.243 trillion. One of the main factors responsible for this sudden pullback is a wave of selling, as market participants rushed to exit the market at breakeven after the rebound.
Notably, total market volume increased to $121 billion yesterday, representing growth in trading activity. During a market downturn, an increase in trading volume suggests an increase in sell-offs. Despite a slight decline, volume remained above the $100 billion mark, currently standing at $112.7 billion.
Also, Coinglass data confirms that Bitcoin derivatives volume increased by 10.31% in the last 24 hours reaching $98.1 billion at the time of writing, with the long/short ratio at 0.9573. This figure indicates a confluence between increased derivatives trading and predominantly bearish sentiment.
The prevailing bearish pressure has persisted despite the impending halving event, which is expected to strengthen Bitcoin’s price action by reducing the daily inflation rate. Interestingly, Crypto.com CEO Kris Marszalek warned that this decline would persist before the halving, scheduled for the next three days.
Exchanges also witnessed an increase in Bitcoin inflows, signaling increased selling pressure. Furthermore, the tension surrounding the looming Iran-Israel conflict has not entirely eased relationships suggesting that Israel intends to respond to Iran’s attack.
At its current price, Bitcoin needs to break out of the 50-day EMA at $64,735 to see a near-term shift in sentiment from bearish to bullish. However, the asset is expected to face stiff resistance at $64,200, aligning with Fibonacci 0.236.