Source: Finance Association
① Bitcoin once fell to $59,900 on Wednesday, down more than 15% from its all-time high; ② analysts pointed out that this round of pullback may not be over until further upward signals are seen; ③ The Bitcoin halving event is expected to occur around April 20, but the market doubts that the increase driven by this halving may not be too obvious.
Last weekend's clashes in the Middle East briefly supported the boom in the cryptocurrency market, but by Wednesday, this rebound in currency prices, driven by fear and apprehension, had been completely erased.
Earlier on Wednesday, the price of Bitcoin plummeted to 59,900 dollars, the lowest price since March. As of press release, the cryptocurrency price has stabilized above $61,000, and over the past 7 days, the price of Bitcoin has dropped by more than 12% cumulatively.
Ether, the second-largest token by market capitalization, also fell below $3,000 during the same period, reaching a decline of 2.5% within 24 hours. Among other cryptocurrencies, Solana has plummeted 22% in the past 7 days and Avalanche has dropped 28%; some smaller coins have plummeted by more than 30% in the past week.
The cryptocurrency market fell almost entirely, with several indices tracking the token market losing money, while the CoinDesk 20 index, which tracks larger coins, fell 1.8%.
Wednesday's decline represents that cryptocurrencies are going through a cooling phase after peaking last month. According to Glassnode data, Bitcoin has fallen more than 15% from the latest all-time high, while some altcoins have fallen 40%-50% from recent highs, which is no different from previous cryptocurrency bull market pullbacks.
Weakness will continue
Joel Kruger, a market strategist at LMAX Group, said on Wednesday that Bitcoin investors' behavior indicates that the market is likely to continue to be weak for some time because large investors are not ready to buy on dips now.
He pointed out that the latest blockchain data shows that Bitcoin's large holders are unwilling to buy at the risk of the current decline, which indicates that the market may still see more decline or consolidation before Bitcoin is ready to recover.
He added that Bitcoin's key technical level to watch right now is $59,000, which is an important support area. If Bitcoin can stay above this level, then it will continue to have the ability to hit new record highs and the $100,000 target.
But he also warned that if the market sees more downward pressure, such as Bitcoin falling below $59,000, this will break the short-term bullish outlook and open the door for a pullback into the $45,000-$50,000 range.
Is the halving event a good way to stop the decline?
Bitcoin's halving is expected to occur this Friday or Saturday. Historically, after three halving events, the price of Bitcoin soared about 10 times, 2 times, and 6 times, respectively. However, this time this year, due to geopolitical tension and the impact of Bitcoin ETFs, risk levels have risen, and the situation is different.
There is no shortage of people in the market who are relatively pessimistic about the increase brought about by the halving event because they have seen that Bitcoin has recently reached an all-time high.
Another factor stopping Bitcoin's rise is that the Federal Reserve delayed the pace of interest rate cuts due to economic data, further undermining confidence in the crypto market.
editor/tolk