Altcoins sell-off as Bitcoin price drops to its ‘macro level support’ at $38K

The cryptocurrency market and wider international monetary markets fell underneath strain on April 26 after the hype surrounding Elon Musk’s buy of Twitter started to fade and issues concerning the state of the worldwide economic system took the forefront once more.

Tech-related shares have been a number of the hardest-hit assets on April 26 and this pullback was followed by sharp declines in crypto prices as risk assets become persona non grata in these turbulent markets.

Data from Cointelegraph Markets Pro and TradingView shows that after holding support at $40,500 through the early trading hours on April 26, the price of Bitcoin (BTC) dumped 6.21% in afternoon trading to hit a low of $38,009.

BTC/USDT 1-day chart. Source: TradingView

April 26’s price action looks to be a continuation of the weakness seen across financial markets this April, and month-to-date, the S&P 500 is down by 7%, while the Nasdaq declined 11% and the Dow is nursing a 3% loss.

The bearish trend in FAANG stocks has essentially been a weight that has dragged down the wider market and the recent 35% decline in the price of Netflix on April 20 highlighted a major kink in the “strong markets” narrative.

Bitcoin retests its macro range low

April 26’s sell-off in the price of Bitcoin has led many analysts to reiterate that we are headed for a bear market bottom, but not everyone has such a dire outlook, including crypto analyst and pseudonymous Twitter user Rekt Capital, who posted the next chart exhibiting the worth retesting a significant help zone.

BTC/USD 1-week chart. Supply: Twitter

Rekt Capital stated:

“BTC is correct again on the long-standing macro Increased Low help.”

In keeping with the analyst, BTC continues to commerce throughout the vary it has been caught in because the starting of the 12 months and there’s nonetheless a robust quantity of help within the decrease $30,000 vary.

Associated: Bitcoin fails to carry $40K with merchants nonetheless hoping for a BTC value aid bounce

Additional perception into the weak spot throughout international markets could be discovered by trying on the sturdy efficiency of the DXY, which is at the moment at its highest value in two years, according to crypto Twitter analyst Miles J Artistic.

DXY 1-day chart. Supply: Twitter

The analyst stated,

“Greenback coming into the hazard zone. To the moon or goblin city?”

The destiny of the market will seemingly hinge on how the greenback performs shifting ahead amid rising inflation, ongoing provide chain disruptions and the worldwide battle in Europe.

Each day cryptocurrency market efficiency. Supply: Coin360

The general cryptocurrency market cap now stands at $1.605 trillion and Bitcoin’s dominance fee is 45.5%.

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