Why Is Crypto Falling Today? This is one of the big questions facing crypto investors and traders today, especially after a number of top cryptos, including Bitcoin, saw gains this week.
At the time of writing, the global crypto market cap has once again fallen to $1.23 trillion with almost all major crypto tokens in the red. (Check today’s crypto prices here). Bitcoin has also fallen nearly 6% in the past 24 hours.
While analysts are still calling the current fall in the crypto market a “correction,” the crypto market is failing to build momentum.
Experts say the crypto market is following a similar path to the stock markets and the chances of traders remaining bullish on cryptos are low.
“With US stocks enduring another day of retracement, crypto markets followed a similar path. With the high correlation between BTC and the S&P 500 Index, the chances of traders remaining bullish on cryptocurrencies were lower,” Darshan Bathija, CEO and co-founder of crypto exchange Vauld, told FE. Online.
“With BTC falling below 30,000, the gains made over the past few days have been erased. Altcoins also saw a drop in price,” he added.
Low appetite for risk
One of the reasons for the fall in crypto prices could be the low-risk appetite of traders and investors, especially after the Terra (Luna) debacle.
“Bitcoin and most cryptocurrencies fell on Wednesday. Even though May was a tough month for cryptos, BTC had a brief rebound in the past week, but fell back to US$29,000 in the last 24 hours. This indicates a low appetite for risk among buyers. It remains to be seen how long the downtrend will continue to affect the market,” said Edul Patel, co-founder and CEO of crypto investment platform Mudrex.
What future for Bitcoin?
Trade analysts say Bitcoin continues to move in a descending triangle pattern. It can attend immediate support at $26,800. The next resistance for Bitcoin could be $40,000.
“Bitcoin corrected nearly 6% yesterday, dropping below the $30,000 level again. BTC had made a slight rally over the past two days, surging above $32,000, but the momentum did not last long as the dollar index regained some lost ground. Bitcoin’s daily trend continues to cross a descending triangle pattern,” WazirX Trade Desk analysts shared in an emailed note.
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“The next resistance for BTC is expected at $40,000 and immediate support is expected at $26,800. Bitcoin needs to break above the $40,000 level to see any significant rally. Until then, BTC may continue to consolidate between $28,000 and $40,000,” they added.
(Cryptos and other virtual digital assets are unregulated in India. They are considered extremely risky for investment. Please consult your financial advisor before making any investment decision)
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Why Crypto Is Falling Today – Reason For Cryptocurrency Market Crash (6/2)
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