Bitcoin (BTC), the world’s leading cryptocurrency by market value, experienced a notable downturn early Friday, signaling a bearish shift after a period of consolidation. The digital asset’s slide below a critical trading range coincided with a stall in the Dow Jones Industrial Average’s rally, indicating a broader market sentiment of caution among investors.
Bitcoin price slipped over 2,5% to $115.170, marking its lowest point since July 10, according to data from CoinDesk. This move represents a decisive break to the downside from its recent trading band, which had seen prices oscillate between $116.000 and $120.000. The breakdown follows technical indicators that had hinted at a bearish resolution, prompting concerns about further declines. The original article notes an increased possibility of Bitcoin prices revisiting a former resistance-turned-support level at $11.956, which was a high point recorded in May.
Source: coingecko
The broader cryptocurrency landscape mirrored Bitcoin’s struggles, with major altcoins like Ether (ETH), Solana (SOL), and XRP (XRP) each registering losses of 2% to 3%. The CoinDesk 80 index, a key gauge of the wider crypto market’s health, stood at 898 points at press time, reflecting a 2,6% drop over the last 24 hours. This synchronized decline underscores the interconnected nature of the crypto market, where Bitcoin’s movements often set the tone for other digital assets.
Adding to the subdued mood, Wall Street’s Dow Jones index saw a 0,70% decline overnight. This retreat suggests that sellers are regaining control around the 45.000 mark, a significant horizontal resistance level identified by highs reached in December and January. The performance of traditional equity markets, particularly bellwethers like the Dow Jones, is often observed by crypto investors for broader risk appetite signals. A potential bearish reversal in the Dow could further dampen sentiment across the volatile cryptocurrency market.
As both crypto and traditional markets show signs of exhaustion at key resistance points, investors are closely watching for sustained trends. The current correlation highlights how closely the burgeoning digital asset space can be influenced by macroeconomic factors and shifts in conventional financial markets.
Disclaimer: This article is for informational purposes only and should not be taken as financial advice. Always conduct thorough research before making investment decisions.
