By
Godfrey Benjamin
April 29th, 2024
Bitcoin price has struggled to rally beyond $72K despite its dominance against altcoins rallying further against all odds.
The cryptocurrency market led by Bitcoin (BTC) and Ethereum (ETH) closely mirrored major stock indexes in Europe, Asia, and the United States in general correction in the past 24 hours. Notably, around $300 million has been liquidated from the crypto derivatives market, mostly involving long threaders. Furthermore, Bitcoin and Ether prices dropped around 5 percent in the past 24 hours to trade at about $63,326 and $3,087 respectively.
In the United States, the Dow Jones Industrial Average (DJIA), the S&P 500, and the NASDAQ Composite Index (NASDAQ: COMP) slipped 0.65 percent, 1.2 percent, and 1.79 percent respectively in the past 24 hours.
In Europe, the FTSE 100, DAX, and CAC 40 all dropped by around 1.3 percent in the past 24 hours. In Asia, the Nikkei 225, Asia Dow, and Hang Seng declined by about 2 percent in the past 24 hours.
The general wide market drop was largely attributed to the looming Middle East crisis between Israel and its neighboring countries. Furthermore, the ongoing conflict between Russia and Ukraine has already constrained the trade relations between major global superpowers.
Nonetheless, MicroStrategy Inc (NASDAQ: MSTR) founder and Chairman Michael Saylor has severely reiterated that Bitcoin thrives in crisis.
Analysts Take on Bitcoin and Crypto Ahead of Halving Event 2024
According to Markus Thielen, founder of 10x Research, most spot Bitcoin ETF investors have opted to watch from the sidelines due to ongoing market correction. Furthermore, the narrative of possible interest rate cuts in the United States, which has been a major driver of the recent bullish sentiment, is currently being challenged.
“Our growing concern is that risk assets – stocks and crypto – are teetering on the edge of a significant price correction. The primary trigger is the unexpected and persistent inflation. With the bond market now projecting less than three cuts and 10-year Treasury Yields surpassing 4.50%, we may have arrived at a crucial tipping point for risk assets,” Thielen told clients on Tuesday.
As a result, Thielen noted that they sold all their tech stocks on Tuesday and currently only hold high-conviction crypto coins. The bearish outlook on risk assets like crypto comes amid ongoing regulatory scrutiny on altcoins by the United States Securities and Exchange Commission (SEC).
According to the US SEC, most of the altcoins fall under the securities law led by Ethereum and Ripple Labs-backed XRP.
Midterm Price Predictions
Bitcoin price has continued to range between $72K and $61K in the past few weeks, despite the notable gains in the dominance against the altcoin industry.
#Bitcoin holding up on support here after a lower timeframe rejection.
If this is lost, we can expect $55K to come in, but overall, I think it's likely that we're holding here and start a slow grind upwards. pic.twitter.com/GK5DMNwsTp
— Michaël van de Poppe (@CryptoMichNL) April 16, 2024
According to a popular crypto analyst Michael van de Poppe, Bitcoin price has found a solid support level around $61,441, whereby the bulls must defend at all costs to avoid capitulation towards $55K.