The cryptocurrency market took a sharp downturn, falling by over 6 percent in the last 24 hours, bringing the total market value to around $2.24 trillion on Wednesday. This decline occurred during the mid-London session and raised concerns among investors.
Particularly significant was Bitcoin’s price dropping below the critical support range of $59,000 to $61,000 for the first time since February 2024. Currently, Bitcoin is trading around $57,123. The increased market volatility resulted in substantial losses, with nearly half a billion dollars wiped out in crypto leverage trading, mostly affecting long trades.
Key Developments in the Cryptocurrency Market
Attention now shifts to the United States Federal Reserve, as it prepares to reveal crucial market data, including benchmark interest rates and the FOMC statement. Investors eagerly await this data for insights into potential interest rate adjustments later in the year.
However, hopes for the approval of spot BTC and ETH ETFs in Hong Kong were dashed, as these products garnered only a fraction of the interest seen in similar US-based offerings. This outcome has dampened market sentiment across the cryptocurrency sphere.
Moreover, the cryptocurrency market grapples with the aftermath of former Binance CEO Changpeng Zhao’s (CZ) four-month imprisonment in the United States. Market participants are digesting the implications of his legal battles, which continue to unfold.
Analysis of Bitcoin’s Price Movements by Crypto Trader Mags
Renowned crypto trader and analyst, known as Mags on the X platform, shared insights into Bitcoin’s price movements. Mags emphasized the significance of Bitcoin maintaining support above $57,500 in the coming days to sustain bullish momentum.
According to the analyst, Bitcoin has undergone correction phases ranging between 20-22 percent, making the range between $57,500 and $58,000 a crucial support zone.
#Bitcoin – $57,500 should be the bottom or its over ?
On the weekly chart, the price is trading below the weekly support zone of $60,000.
I see a lot of people calling for $50,000. The problem with this is if the price closes below the blue box, it would make the price action… pic.twitter.com/CQ9M9rNDC3
— Mags (@thescalpingpro) May 1, 2024
However, Mags cautioned that a failure to hold above the current support level could lead to Bitcoin’s price dropping below $40k. This scenario could potentially trigger another bull run in the fourth quarter following a period of macro consolidation.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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