Bitcoin Price Drops to Two-month Lows
01 May, 2024 ● Coin news
Bitcoin reached new multi-month lows on May 1 as market uncertainty resulted in traders losing half a billion dollars.
Data from TradingView showed BTC price declines accelerating during the Asian session, with BTC/USD falling to $57,082 on Bitstamp.
This represented the pair’s lowest level since February, with second-quarter losses exceeding 20%.
Bearish fiscal policy actions by United States Treasury Secretary Janet Yellen, along with a legal judgment against crypto exchange Binance and its founder Changpeng Zhao, contributed to the negative sentiment in the crypto market.
Cointelegraph had earlier reported on expectations that Yellen would boost liquidity, but she took measures to do the opposite, negatively affecting risk assets overall.
“Yellen deciding to pull liquidity from the market, instead of drawing down on reserves to fuel liquidity higher,” financial commentator Tedtalksmacro wrote in part of a reaction on X.
“Risk appetite takes a hit.”
Even before the decline accelerated, warnings had been issued for Bitcoin and altcoins, with markets remaining stagnant since BTC/USD reached all-time highs in mid-March.
Key support levels were now deteriorating, with neither the $60,000 mark nor the short-term holder realized price providing any reassurance to bulls.
“If you must panic, at least wait for the almost two-month-old support to break down first,” popular trader and analyst Rekt Capital advised X subscribers the previous day.
Analyzing the recent developments, Charles Edwards, founder of the quantitative Bitcoin and digital asset fund Capriole Investments, outlined what he saw as two possible paths for BTC’s price trajectory.
“‘Sell in May and go away.’ This looks like distribution to me,” he summarized in an X post. “As long as we trade below $61.5K, scenario (1) is technically more likely. A strong reclaim of $61.5K would give some hopes to the bulls for scenario (2). A flush would also be good for the sustaining continuation of the bull market, the sooner we get one, the better the long opportunities are.”
The latest live data from monitoring resource CoinGlass showed 24-hour crypto liquidations totaling $470 million at the time of writing.
Bitcoin accounted for $160 million of the total, with Ethereum at $120 million.
Despite the April monthly close occurring before BTC/USD fell below $60,000, April 2024 was still the pair’s worst month since the depths of the 2022 bear market.
Sources:
https://cointelegraph.com/news/bitcoin-price-loses-60k-support-2-month-lows
https://www.tradingview.com/symbols/BTCGBP/?exchange=BINANCE
https://twitter.com/tedtalksmacro/status/1785463287825735908
https://twitter.com/rektcapital/status/1785296501708591196
