The cryptocurrency market faced a downturn on Monday, raising concerns about further declines. Analysts point to technical indicators and upcoming events that could put downward pressure on crypto prices.
Bitcoin, the leading cryptocurrency, dropped 2% in the past day, slipping below $62,000. This is a significant decline from its mid-March peak near $74,000. Technical analysis suggests potential weakness, with prices trading considerably lower than their 50-day average.
Experts predict a possible retest of the $60,000 support level. Attracting new buyers is crucial for a market rebound, but selling pressure seems strong. Analysts see a higher chance of Bitcoin dipping to $52,000-$55,000 in the coming weeks rather than staying above $60,000.
The recent “halving” event, meant to bolster prices in the long term, failed to trigger immediate gains. The surge in investor interest witnessed earlier this year might be fading, with signs of money flowing out of Bitcoin ETFs.
Also Read: Is This The New Crypto Winter? Boom or Bust in 2024?
This week holds several events that could significantly impact the crypto market. The stock market’s reaction to upcoming corporate earnings reports will be closely watched. Additionally, the Federal Reserve’s interest rate decision on Wednesday and the US jobs report on Friday are key factors to consider.
Cryptocurrencies have historically moved in tandem with the stock market and overall risk sentiment. Weak earnings reports or negative economic forecasts could trigger sell-offs in stocks, potentially leading to a similar trend in Bitcoin.
The decline wasn’t limited to Bitcoin. Ethereum, the second-largest cryptocurrency, fell 4%, dropping below $3,200. Other altcoins also experienced losses, with Solana and Ripple dropping 5% and 3% respectively. Memecoins like Dogecoin and Shiba Inu saw similar dips of around 5%.
Disclaimer: The information provided in this article is for informational purposes only and should not be taken as financial advice. The crypto market is subject to high volatility and involves significant risk. Readers are encouraged to conduct their own research and due diligence before making any investment decisions. Consider seeking guidance from a qualified financial professional.
