In the early Asian trading period on Tuesday, the total cryptocurrency market cap retraced approximately 2 percent, falling to about $1.13 trillion. This decline resulted in over $111 million being liquidated within the crypto market during the past 24 hours, with long traders taking the biggest hit. Despite the recent excitement surrounding the launch of an Ethereum futures ETF, the crypto market struggled to gather the bullish momentum it needed.
According to the latest data from the crypto market, Bitcoin (BTC) and Ethereum (ETH) experienced drops of approximately 1.7 percent and 3.5 percent, respectively, in the past 24 hours.
Key Factors for the Crypto Market’s Decline
The crypto market has evolved into a complex industry influenced by various factors. However, several prominent reasons for the recent retracement in the past 24 hours exist.
1. Death Cross Impact
From a technical perspective, Bitcoin is facing significant bearish pressure in the short term due to daily and weekly death crosses between the 50 and 200 Moving Averages (MA). Notably, Bitcoin’s price closed Monday below the 200 MA. Furthermore, it remains below the weekly 200 MA, which has extended the bearish outlook.
2. Bearish Bitcoin Fractal
Prominent digital asset analyst Rekt Capital suggests that Bitcoin’s price is on a path to $20,000 amid a bearish fractal formation. This bearish fractal envisions the price rallying to as high as around $29,000 before retracing below $25,000.
3. SBF Trial Pending
The crypto market is anxiously awaiting the outcome of the trial of Sam Bankman-Fried (SBF), the former FTX boss, accused of orchestrating one of the most significant modern American corporate failures involving blockchain technology. This legal battle carries significant implications for the market and has created an atmosphere of uncertainty.
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.