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BTC prices fell to a two-month low of $59,130 in early trading on May 1, a public holiday for most of Asia.
It is the first time the asset has fallen this low since the end of February, when momentum was bullish.
With monthly support now broken, analysts are eyeing the next levels and the bottom of this expected market correction.
Normal Market Activity
Industry analysts and experts don’t appear to be fazed by the pullback, which has now reached 19.8%. Global Macro Investor founder and CEO Raoul Pal observed that it was the fourth correction of such magnitude over the past 12 months.
This is the 4th 20% correction in BTC in 12 months…pretty ordinary stuff. pic.twitter.com/YT3gs4jUlG
— Raoul Pal (@RaoulGMI) April 30, 2024
Moreover, corrections in previous bull market cycles have been much larger in magnitude, so there could be more pain before gains resume.
Crypto analyst ‘Cold Blooded Shiller’ said lower levels still pave the way for the full 30% retracement from the high, and the bears are still in control. Such a decline from the mid-March all-time high could send BTC prices down to $52,000.
“In no rush to throw money into the market until $58k sweep + recovery, $52k puke, or $62.5k reclaim,” said the trader.
Meanwhile, Capriole Fund founder Charles Edwards concurred that corrections were normal, adding:
“If you are not prepared to accept some downside in this asset class, you shouldn’t be here. Especially now.”
Macroeconomics outlet the Kobeissi Letter took a wider view of asset classes, including stocks, commodities, and bonds, reporting that they were down across the board ahead of today’s Federal Reserve meeting.
“This feels like a general move out of risky assets as uncertainty spikes.”
Current situation:
1. Stocks are down ahead of more big tech earnings
2. Oil prices are down on fears of higher interest rates
3. Gold prices are down on worries over a stronger Dollar
4. Natural gas prices are down on weak US demand
5. Bond prices are down ahead of the May…
— The Kobeissi Letter (@KobeissiLetter) April 30, 2024
Altcoins Getting Hammered
Total market capitalization has taken a 6.4% dump over the past 24 hours, with around $135 billion leaving the space. As usual, altcoins are taking the brunt of it.
Ethereum has been smashed by 6.6% falling below the psychological $3,000 level to $2,940 during Asian trading before a marginal recovery.
The rest of the altcoins were a sea of red with larger losses for Solana (SOL), Dogecoin (DOGE), Shiba Inu (SHIB), Avalanche (AVAX), Bitcoin Cash (BCH), and Near Protocol (NEAR).
The market slump follows the news that former Binance CEO Changpeng Zhao has been sentenced to four months in prison.