Altcoin Investors May Awaken to the Nightmare! This Week Is Very Critical For Cryptocurrencies!
Bitcoin again sags below the $38,000 level and continues to find buyers at $37,900 at the time of writing. We will cover the critical levels for the largest altcoin and examine the reasons for the recent drop. As Bitcoin lost the critical level, rapid sales began in altcoins.
The decline in tech stocks has caused Bitcoin to fail to hold the “macro-level support” zone. We talked a lot about Bitcoin ‘s correlation with technology stocks and possible increased volatility. Cryptocurrency and global financial markets came under pressure on April 26 as the hype surrounding Elon Musk’s purchase of Twitter began to wane and concerns about the state of the global economy resurfaced .
Tech-related stocks were some of the most affected assets on April 26, followed by sharp drops in crypto prices ($261 drop and $271 recovery) as risk assets became unwanted in these turbulent markets. Google shares suffered heavy losses pending the announcement of the balance sheet. Balance sheet announcements of major technology companies will continue throughout this week. Big investors, who think that the data will be bad, continue to play (short) the fall of Bitcoin.
- Wednesday: Paypal and Facebook (23:00)
- Thursday: Twitter (14:00)
- Thursday: Amazon and Apple (23:00)
The price action on April 26 appears to be a continuation of the weakness seen in financial markets this month, with the S&P 500 losing 7%, the Nasdaq 11% and the Dow 3% month to date. On the other hand, it should not be forgotten that the US Dollar price index DXY continues to rise.
The sell-off in Bitcoin price on April 26 prompted many analysts to reiterate that we are heading towards the bottom of the bear market, but not everyone has such dire expectations, including cryptocurrency analyst and alias Twitter user Rekt Capital, who posted the chart below.
Rekt Capital said:
“ BTC is back to long-standing macro High-Low support.”
Altcoin Investors Attention
According to the analyst, BTC continues to trade in the range it has been stuck in since the beginning of the year and there is still strong support below $30,000. According to cryptocurrency analyst Miles J Creative, more can be learned about the weakness in global markets by looking at the strong performance of DXY, which is now at its highest price in two years.
Altcoins that are highly correlated with Bitcoin may experience much more serious losses after the daily close. It may be beneficial for investors to invest much more carefully against altcoins that have lost their strong support. The fate of the market will likely depend on how the dollar fares amid rising inflation, ongoing supply chain disruptions and global conflict in Europe.