The cryptocurrency market is facing a downturn, with Bitcoin struggling to maintain its momentum after nearing its all-time high. After weeks of impressive growth, the total market cap has dropped by around 4%, now sitting at approximately $3.54 trillion.
But what’s really driving this sudden shift? From controversial memecoin launches to large-scale liquidations, several factors are at play.
Keep reading to uncover the key events shaking the market and what’s ahead for Bitcoin in the coming weeks.
A major event impacting the market involves accusations of market manipulation against Donald Trump and his team. Over the weekend, Trump-backed memecoins, like the Official Trump (TRUMP) token and Melania Trump’s self-branded memecoin, launched and quickly surged in value. Together, these tokens hit a combined market cap of over $15 billion.
But critics have raised concerns, accusing the Trump family of orchestrating a “pump and dump” scheme for their own gain. These allegations have caused some uncertainty in the market, leading investors to question the legitimacy of these coin launches.
Bitcoin, currently trading at $102,484, has seen a slight drop of 2%, following an impressive 10% rise in recent weeks. This pullback seems to be driven by short-term holders cashing in on profits, which has contributed to the current dip.
On-chain data from Santiment shows that the 7-day Market Value to Realized Value (MVRV) ratio is nearing levels where investors typically take profits. Historically, when this ratio’s 7-day moving average (MA) hits around 3%, a price reversal tends to happen, suggesting that the market might be due for a shift.
The market has also seen significant liquidations, adding more pressure on prices. According to CoinGlass, $1.18 billion worth of positions were liquidated in the past 24 hours as Bitcoin briefly fell below $100,000. Long traders suffered the most, with $921 million in liquidations compared to $260 million in short positions.
Binance recorded the largest single liquidation order at $15.24 million.
Despite the dip, Bitcoin’s breakout above $99,800 is seen as a key step forward. Experts are now focusing on the next major resistance level at $105,700. If Bitcoin breaks past this level, it could signal even higher prices ahead.
While some profit-taking may lead to a pullback into the $99,100–$100,400 range, strong buying interest in these areas could help Bitcoin regain momentum. Using Fibonacci levels, Bitcoin’s next major target is projected at $120,362, offering a hopeful outlook for the weeks to come.
In conclusion, the cryptocurrency market is facing some uncertainty and volatility right now. But with key levels suggesting potential growth, Bitcoin’s journey isn’t over yet.
The crypto market fell 4% as Bitcoin dropped to $102,484, with $1.18B liquidated and concerns over Trump memecoin controversies.
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