Bitcoin
Led by Bitcoin, Ethereum, here’s why the crypto market is bearish today
- The crypto market is bearish today due to a significant correction phase.
- Bitcoin struggles around the $56,000 support level, with technical indicators suggesting a potential reversal.
Checking the crypto market today, you will see nothing but red. The entire market appears to have fallen, with Bitcoin [BTC] It is Ethereum [ETH] taking most of the hits, falling far below its critical support levels.
Optimistic feelings in the community seem to have almost completely disappeared. Once again, investors are panicking, possibly on the verge of giving up. So, what is happening? Why is the crypto market bearish now?
Overall, 2024 is expected to be a highly optimistic year for markets. And has. But we are currently dealing with a strong case for fixes.
Data from Coinglass shows us that both tokens have seen more inflows than outflows over the last twenty-four hours. Furthermore, settlements are relatively low.
On May 10, US banking titans JPMorgan and Wells Fargo made headlines with their disclosures about holding spot Bitcoin ETFs.
However, this revelation had almost no impact on the overall market dynamics. Bitcoin, for example, appears stuck in a prolonged correction cycle, stubbornly testing investors’ patience.
Source: Coinglass
Why is the crypto market in crisis?
The immediate support level for BTC is now around $56,000 for traders. The breakup is still imminent, as is widely expected by the community.
TradingView data tells us this is where fear and optimism collide, where traders waver between hope for a breakout and fear of a further decline.
Bitcoin is retesting its former all-time high resistance levels, now as new support zones.
This activity shows a typical case of bullish RSI divergence on the 4-hour chart, suggesting that the downtrend momentum is losing momentum and could reverse soon.
However, the currency is still navigating through the dangerous falling wedge pattern – a technical indicator that suggests that although the end of the tunnel may be near, the road remains full of fear and uncertainty.
Community consensus leans toward an eventual breakout, which could catapult Bitcoin’s value to new heights, potentially reaching $78,000 in the next bullish waves.
Source: TradingView
As for Ethereum, its current trajectory is a little different from that of Bitcoin. The Ethereum derivatives market shows signs of increasing activity and investor interest, according to Glassnode.
Open interest increased by 50%, indicating strong engagement with Ethereum financial products.
However, despite these positive indicators in derivatives, Ethereum’s performance relative to Bitcoin this cycle is much slower.
The lag in speculative interest, especially from the short-term holder group, is a cautious approach among these investors.
Meanwhile, Long-Term Holders seem stay on the sidelines, looking for more profitable opportunities to take profits in future highs.
Source: Glassnode
At press time, Ethereum was worth $2,897.
To read Bitcoins [BTC] Price prediction 2024-25
Even as it battles the current market downturn, the growing interest in its derivatives suggests that these holders may soon see the favorable conditions they await.
In short, the reason for the pullback is that the market is still consolidating and experts expect a breakout anyway. Investors are advised not to give up. 2024 is still the year of crypto.
Next: PEPE investors prefer to accumulate and HODL, not sell: Why?