Why Crypto Is Falling Today – Reason For Cryptocurrency Market Crash (6/2)
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 nearly 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 have also seen price declines,” 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. Although May was a tough month for cryptos, BTC had a brief rebound over the past week but recovered to US$29,000 over the past few weeks. 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 the investment platform. Mudrex crypto.
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 almost 6% yesterday, dropping back below the $30,000 level. BTC had made a slight rally over the past two days, breaking above $32,000, but the momentum did not last. long as the dollar index has 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)