Bitcoin (BTC) has declined by 4.3% over the past 24 hours, resulting in a widespread collapse across the broader crypto market, as investors exit the market at breakeven on the back of the recent recovery push.
The cryptocurrency market is witnessing a sharp decline following the latest rebound that saw multiple assets record double-digit gains. Bitcoin reclaimed the $66,000 price territory on April 15, with the global crypto market cap surging to $2.384 trillion.
However, following the $66,867 high yesterday, BTC witnessed a subsequent collapse, dropping to the higher spectrum of the $61,000 threshold before staging a recovery from this floor. Despite the push above this level, Bitcoin witnessed a 4% decline in the past 24 hours, trading at $63,250 at the time of writing.
Consequently, the crypto market has lost over $79 billion in valuation over the past day, with the global crypto market cap currently sitting at $2.243 trillion. One of the primary factors responsible for this sudden pullback is a surge in selloffs, as market participants rushed to exit the market at breakeven upon the rebound.
Notably, total volume across the market increased to $121 billion yesterday, representing a growth in trading activity. During a market downturn, a surge in trade volume suggests an increase in selloffs. Despite a slight drop, volume has remained above the $100 billion mark, currently amounting to $112.7 billion.
In addition, Coinglass data confirms that Bitcoin derivatives volume has increased by 10.31% in the last 24 hours to $98.1 billion as of press time, with the long/short ratio sitting at 0.9573. This figure indicates a confluence of increased derivatives trades and a predominant bearish sentiment.
The prevailing bearish pressure has persisted despite the upcoming halving event, expected to bolster Bitcoin’s price action by reducing the daily inflation rate. Interestingly, Crypto.com CEO Kris Marszalek warned that this downturn would persist before the halving, slated for the next three days.
Exchanges have also witnessed increased Bitcoin inflows, signaling a rise in selling pressure. Moreover, the tension around the looming Iran-Israel conflict has not fully subsided, with reports suggesting that Israel plans to retaliate to the attack from Iran.
At its current price point, Bitcoin needs to break above the 50-day EMA at $64,735 to record a shift in short-term sentiments from bearish to bullish. However, the asset would face stern resistance at $64,200, aligning with Fibonacci 0.236.
