The price of Bitcoin fell below $38,000 on April 26 as tech-related stocks were some of the hardest-hit assets. As a result, traders were cautious to see if Bitcoin could hold its “macro-level support” zone.
Elon Musk’s purchase of Twitter news created hype in the crypto industry on April 25. Bitcoin and many other altcoins had responded to this, especially Dogecoin, which saw an impressive surge in price.
Related Reading | Institutional Investors Bearish On Bitcoin, Ethereum. Here’s What They’re Buying
As the hype surrounding Elon Musk’s purchase of Twitter faded, the cryptocurrency market and wider global financial markets fell under pressure on April 26. This caused people to become concerned about the state of the global economy again.
The recent fall in cryptocurrency prices was matched by the sharp losses sustained among tech stocks. On April 26, tech-related stock asset Nasdaq lost 4% of its value, hitting a new low of 2022.
According to TradingView, Bitcoin (BTC) held support at $40,500 through the early trading hours on April 26. However, in afternoon trading, the price of Bitcoin (BTC) dropped 6.21% to hit a low of $38,009.Bitcoin moves upward after touching the $38,000 level | Source: BTC/USD chart from Tradingview.com
The decline on April 26 is the continuation of the weakness of financial markets. The stock market has been on a decline this month. The S&P 500 is down 7%. The Nasdaq declined 11%, and the Dow is nursing a 3% loss.
The downturn in Faang Stocks (Facebook, Amazon, Apple, Netflix, and Google) has dragged the wider market down. The recent 35% reduction in the price of Netflix on April 20 highlighted a major problem with the “strong markets” statement.
Bitcoin May Test Macro Range Low
Bitcoin’s price drop on April 26 has made some analysts think that we are headed for a bottom in the market, but not everyone agrees. For example, crypto analyst Rekt Capital says that the price may test a significant support zone.
Rekt Capital tweeted;
BTC is right back at the long-standing macro Higher Low support.
Additionally, the analyst says that Bitcoin is still trading within the range it has been stuck in since the beginning of the year. Therefore, there is still a lot of support in the lower $30,000 range.
Related Reading | Dogecoin (DOGE) Struggles, Drops 9% After Elon Musk Twitter Buyout
The DXY, a measure of the US dollar’s performance against other global currencies, is currently at its highest price in two years. This indicates that the US dollar is doing well compared to other global currencies.
A crypto analyst Miles J Creative said in a tweet;
Dollar coming into the danger zone. To the moon or goblin town?
The market’s future depends on how the dollar performs in the future. In addition, the dollar will be affected by inflation, supply chain disruptions, and the global conflict in Europe.
Bitcoin is currently trading above $39,000 with a $746 billion market cap. Overall, crypto market capital is $1.79 trillion.
Featured image from Pixabay, the chart from tradingview.com