The sell-off in the cryptocurrency market continues, with Bitcoin (BTC) falling below $38,600. The plunge that began yesterday afternoon and accelerated throughout the day after the $39,960 immediate intraday support broke, marks the digital asset’s lowest level since March 15.
Analysts say that the sell-off is a result of Bitcoin’s correlation to risk-on assets, suggesting that a downward Nasdaq 100 Index (NDX) move will likely drag down BTC as well. So far, over $13 billion has been wiped off the value of the flagship cryptocurrency.
That said, Bitcoin has managed to bounce back somewhat after reaching the intraday low, currently trading just above $39,000. Obviously, the cryptoasset is in the midst of a pullback, after bulls failed to break through the critical $48,000 resistance level reached in late March.
The decline has set the coin into a falling channel pattern where it made a series of lower highs and lower lows.
While, market risk is a function of many variables, the cryptocurrency has been under pressure lately due to the macroeconomic landscape which looks shaky following the Federal Reserve’s rapid tightening monetary policy announcement, Russia’s invasion of Ukraine and particularly the risks that such aggression poses to the territories of the European Union.
As reported by Wallstreetpit, while no one can say for sure what will happen, some experts believe that Bitcoin may stay sideways for another two years before reigniting its bull run.
In fact, in an April 6 tweet, prominent commodity trader Peter Brandt, after highlighting historical data related to BTC bull cycle patterns, suggested that hodlers will have to wait until 2024 for Bitcoin‘s next major rally.
As expected, altcoins took a hit on Monday, with Bitcoin falling below $39,000 for the first time in over a month with Ether (ETH), Avalanche (AVAX), Doge (DOGE), Cardano (ADA), Terra (LUNA) and Solana (SOL) being all in the red over the last 24 hours.
As of press time, BTC is changing hands at $39,032, down about 3.50% intraday. The $743 billion market cap coin whose market dominance remains at 41%, traded in a range of $38,696.19 – $40,570.73, indicating significant volatility over the last 24 hours.