Bitcoin and other cryptocurrencies experienced a decline on Tuesday, underperforming the stock market and facing the risk of breaching key price levels due to diminishing momentum in the crypto space.
The price of Bitcoin has dropped by approximately 1% in the past 24 hours, currently hovering slightly above $30,000. Earlier today, it fell below this psychologically significant level and weakened further to around $29,700 at certain points. Throughout the past month, Bitcoin has remained within a range of $30,000 to $31,000, with its current position at the lower end of this range.
“While stock indices have shown positive performance and achieved multi-month highs, the value of the leading cryptocurrency fell below $30,000 on Monday,” commented Alex Kuptsikevich, an analyst at broker FxPro.
Indeed, despite recent gains made by the stock market, including the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, cryptocurrencies have failed to keep up and have lost momentum even after recent positive developments.
In June, Bitcoin rallied above $30,000 following new applications for spot Bitcoin exchange-traded funds and a favorable court ruling in a significant case involving Ripple and the Securities and Exchange Commission. However, it appears that this momentum is now dissipating and the technical market outlook is weakening. There is a possibility of further price declines before any substantial support is found.
“Bitcoin is currently consolidating tightly below long-term resistance,” explained Katie Stockton, managing partner at technical research firm Fairlead Strategies. “A pullback seems increasingly likely, with initial support located around the rising 50-day moving average at approximately $28,700. If this support level is breached, long-term secondary support can be found near the former resistance around $25,200.”
Apart from Bitcoin, Ether, the second-largest cryptocurrency, also experienced a decline of over 1%, now sitting at $1,900. Smaller tokens or altcoins have shown weakness as well, with both Cardano and Polygon slipping by 3%. Likewise, meme coins such as Dogecoin and Shiba Inu have also shed around 2%.
In summary, the crypto market is currently facing a decline due to fading momentum. Bitcoin, in particular, is testing crucial support levels and may experience further downward movement. Other cryptocurrencies have also followed suit, exhibiting weakness across the board.
