Bitcoin’s Recent Drop Triggers Market Fluctuations and Tests Key Support Levels

During the week Bitcoin faced a decrease, in its value particularly on April 12 and 13 leading to significant effects across the cryptocurrency market. Throughout this timeframe Bitcoins price dropped significantly to $65,099.

This decline resulted in the liquidation of $2.5 billion in cryptocurrencies impacting positions more than short ones. These positions were established with the expectation of a continued surge leading up to the Bitcoin halving event.

As Bitcoin encountered challenges its repercussions reverberated throughout the market especially affecting altcoins. Notably several of the 20 cryptocurrencies based on market capitalization witnessed around a 20% decrease in their values. This sharp decline in altcoin prices contributed to Bitcoins dominance in market capitalization rising to 56.3% on April 12 marking its level of dominance seen in three years.

Despite the market response Bitcoins support level at $60,000 remained strong preventing downward movement and hinting that the recent price dip could be a typical correction, within an overarching bullish phase. Traders have been advised to proceed with caution. Have not felt compelled to panic as the support level has remained stable.

The recent fluctuations, in Bitcoin prices have been fluctuating between $60,775 and $73,777 showing uncertainty about whats to come. On April 13th the BTC/USDT trading pair dropped below its 50 day moving average of $66,743. Then slipped under the support level of $60,775.

However there was a rebound as the lower prices were well defended as seen by the tail on the candlestick chart indicating buying interest during those dips.

In the future any attempts to recover may face obstacles at the 20 day exponential moving sitting at $67,807. If unable to surpass this hurdle it could lead to another push by sellers aiming to drop prices below the support level of $60,775. Conversely a successful break above the 20 day exponential moving average could open doors for a rally up to $73,777.

The downward trend highlighted by the 20 day exponential moving average and a negative reading on the relative strength index imply that sellers are currently dominating market dynamics. Any potential upward movement is likely to encounter resistance at this moving average.

If prices fall from hereon out another test of the support level at $60,775 might be, in store.If this level doesn’t hold the pair could drop towards the 61.8% Fibonacci retracement level at $54,298.

On the hand breaking above the 20 day exponential moving average might result in a period of trading, between $60,775 and $73,777. To see a bullish trend continuation buyers must push the price above $73,777 to pave the way for an upward push, towards $80,000 and eventually reaching $84,000.