The cryptocurrency market is navigating through turbulent waters today, causing concern among many investors. Bitcoin‘s price has retreated below $65,000 due to the formation of a bearish failure pattern (SFP) over the weekly timeframe. But why did this drop occur?
Profit Taking Initiates for Bitcoin
Bitcoin’s momentum is clearly waning. According to CoinGecko, with the decrease in short-term buying pressure, investors have started to realize their profits, subsequently reducing the total value of the cryptocurrency market from $2.89 trillion to $2.66 trillion.
Data from CoinGlass indicates that Bitcoin’s price has lost about 10% in value over the last four days, leading to a $400 million liquidation in just the past 24 hours. Alongside BTC, the liquidation of positions by traders who took long-focused positions in other cryptocurrencies like Ethereum and Solana has caused widespread concern.
These developments suggest that the downward trend in Bitcoin’s price could deepen if it continues. Although the direction of the markets is currently uncertain, it is crucial for investors to remain vigilant and closely monitor market developments.
What Contributed to the Bull Run in Bitcoin and Other Cryptocurrencies?
The bull market’s most significant boosts were the approval of ETFs and the meteoric rise in Bitcoin due to a sudden surge in interest in the Solana ecosystem. However, the recent movement indicates that the upward momentum is dissipating and a correction may be approaching.
As Bitcoin’s rise continued, altcoin markets also remained active. Popular alternative cryptocurrencies like Solana and meme coins have been largely shaped by BTC’s trends. With the cryptocurrency BTC in a downtrend, altcoins are also declining, with AI coins and meme coins leading the drops.
From this point forward, the main thing investors need to be aware of is that rises will not be continuous. The same applies to declines. The flagship of cryptocurrencies, Bitcoin, was trading at $64,492 at the time of writing. The cryptocurrency BTC had fallen to a level of $63,577. Let’s see how the market will show signs of recovery after today’s drop.
