In the early Asian trading session on Tuesday, the cryptocurrency market saw a retracement of approximately 2%, with the total market cap dropping to around $1.13 trillion. This decline resulted in more than $111 million being liquidated within the crypto market over the past 24 hours, primarily affecting long traders. Despite the recent buzz surrounding the launch of an Ethereum futures ETF, the crypto market struggled to gain the bullish momentum it needed.
According to the latest data from the crypto market, Bitcoin (BTC) and Ethereum (ETH) both experienced drops of about 1.7% and 3.5% respectively in the past 24 hours.
The crypto market has evolved into a complex industry influenced by various factors. Thus, it’s no surprise that there are several prominent reasons for the recent retracement in the past 24 hours.
1. Bitcoin Death Cross
From a technical standpoint, Bitcoin is currently facing significant bearish pressure in the short term due to daily and weekly death crosses occurring between the 50 and 200 Moving Averages (MA). Notably, Bitcoin’s price closed below the 200 MA on Monday, and it remains below the weekly 200 MA, which has extended the bearish outlook.
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2. Bearish Fractal Formation
Digital asset analyst Rekt Capital, well-known in the field, suggests that Bitcoin’s price might be following a bearish fractal formation, potentially leading it towards $20,000. This bearish fractal envisions the price rallying to as high as approximately $29,000 before retracing below $25,000.
3. Sam Bankman-Fried Trial Creates Uncertainty
The crypto market is anxiously awaiting the outcome of the trial of Sam Bankman-Fried (SBF), the former FTX CEO, accused of orchestrating one of the most significant modern American corporate failures involving blockchain technology. Without a doubt, whatever the outcome may be of the trial, the market will be majorly impacted. Thus, tensions are running high.
As the cryptocurrency market grapples with these challenges, traders and investors continue to monitor developments closely, seeking insights and opportunities amidst the volatility. A combination of technical factors, market sentiment, and the outcome of the SBF trial will likely shape the next moves in the crypto market.
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