Why is crypto falling today? This is one of the big questions that crypto investors and traders are thinking about today, especially after a number of top cryptocurrencies, including Bitcoin, registered some gains this week.
At the time of writing, the global crypto market value was once again down to $ 1.23 trillion with almost every single crypto token in red. (Check today’s crypto prices here). Bitcoin also fell nearly six percent on lsat 24 hours.
While analysts still call today’s crypto market decline a “correction”, the crypto market is failing to build momentum.
Experts say the crypto market is following a similar path as the stock markets, and the odds of traders remaining positive on cryptocurrencies are low.
“With the US stocks enduring another day of retracement, the crypto markets followed a similar path. With the high correlation between the BTC and the S&P 500 index, the odds of traders remaining positive on cryptocurrencies were lower,” Darshan Bathija said. CEO and co-founder of the crypto exchange Vauld, to FE Online.
“With BTC falling below 30,000, gains over the last few days were wiped out. Altcoins also recorded a fall in prices,” he added.
Low risk appetite
One of the reasons for falling cryptocurrency prices may be low risk appetite among traders and investors, especially after the Terra (Luna) debacle.
“Bitcoin and most cryptocurrencies fell on Wednesday. Although May was tough for cryptocurrencies, BTC saw a brief jump in the last week, but has driven back to $ 29,000 in the last 24 hours. This indicates a low-risk appetite among buyers. It is still not sure how long the bearish trend will continue to affect the market, “said Edul Patel, co-founder and CEO of crypto investment platform Mudrex.
What next for Bitcoin?
Trade analysts say Bitcoin continues to move within a declining triangle pattern. It may witness an immediate support of $ 26,800. The next resistance for Bitcoin could be $ 40,000.
“Bitcoin corrected by almost 6% yesterday fell below the $ 30K level again. BTC had made a slight recovery in the last few days and rose above $ 32K, but momentum did not last long as the Dollar index regained some lost ground “The daily trend for Bitcoin continues to cross within a declining triangle pattern,” analysts at WazirX Trade Desk said in a note via email.
ALSO READ | Will Bitcoin rise again in 2022?
“The next resistance for BTC is expected to be $ 40,000, and immediate support is expected at $ 26,800. Bitcoin must break past the $ 40,000 level to witness a significant upward rally. Until then, BTC can continue to consolidate between $ 28K to $ 40K, “they added.