Bitcoin and other cryptocurrencies experienced a decline on Tuesday, trailing behind the stock market and facing the risk of breaching key price levels. The price of Bitcoin has dropped by approximately 1% in the last 24 hours, hovering just above $30,000. Earlier in trading, it dipped under this psychologically significant level and weakened even further to around $29,700 at certain points. Throughout the past month, Bitcoin has remained on the lower end of a range between $30,000 and $31,000.
Despite stock indices reaching multi-month highs, the primary cryptocurrency experienced a rollback below the $30,000 mark on Monday. Analyst Alex Kuptsikevich from broker FxPro highlighted the contrast between the positive performance of stock indices and Bitcoin’s decline.
While the stock market has shown consistent growth with notable gains in the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, cryptocurrencies have struggled to maintain their momentum. Recent positive catalysts, such as new applications for spot Bitcoin exchange-traded funds and the favorable outcome of a significant court case involving Ripple and the Securities and Exchange Commission, propelled Bitcoin back above $30,000 in June.
However, it appears that momentum is waning, accompanied by a weakening technical market outlook. Prices may experience further decline before finding support. Technical research firm Fairlead Strategies’ managing partner, Katie Stockton, emphasized that Bitcoin remains in a tight consolidation phase below long-term resistance. A pullback seems increasingly likely, with initial support anticipated at around $28,700 (the rising 50-day moving average), followed by secondary support at former resistance near $25,200.
In addition to Bitcoin’s struggles, the second-largest cryptocurrency, Ether, also faced a drop of over 1%, settling at $1,900. Altcoins and smaller tokens demonstrated weakness as well, with Cardano and Polygon slipping by 3% each. Memecoins like Dogecoin and Shiba Inu followed suit, shedding 2% of their value.
In conclusion, despite recent positive developments, Bitcoin and other cryptocurrencies face challenges as they struggle to maintain momentum. The technical outlook suggests a potential pullback and the need for further support. Market observers closely monitor these developments in anticipation of potential shifts in the cryptocurrency landscape.