Bitcoin Falls Below $30,000 Amid Dollar Jump, Mixed Q1 Earnings
Bitcoin (BTC)’s rally above $30,000 has stalled – at least temporarily.
The largest cryptocurrency by market capitalization recently traded at around $29,500, down 2.6% over the past 24 hours. BTC began its decline on Sunday, falling as low as $29,292 before rebounding slightly, according to CoinDesk data.
“Even if it did breach $30,000, the price would likely look for support on the downside and potentially consolidate before another leg up,” DiPasquale said, adding that with BTC recently holding around the mid-$29,000s, most indicators of hourly time frame, such as Relative Strength Index (RSI) and Stochastic RSI, suggest a top up.
“What the bulls will see is a strong bounce from between $28,000 and $29,000 and a retracement of $30,000 in the coming days,” he said, though he also noted that BTC’s price could drop to $23,000 before rebounding — In this case, ” it may take longer for (the upside) to materialize.”
Coinglass data showed that traders betting on rate changes have liquidated over $32 million in BTC long positions since Sunday evening, compared to about $1 million in BTC short positions. These types of long squeezes tend to send prices lower.
Riyad Carey, research analyst at crypto data firm Kaiko, said several macroeconomic factors, including Monday’s US dollar jump and a mixed bag of first-quarter results, may have sent BTC’s price down. The US Dollar Index and BTC’s price are negatively correlated, Carey told CoinDesk, adding that that correlation has decreased since the start of the year.
Ether (ETH) recently hovered around $2,084 on Monday, down 0.7% from Sunday at the same time, but held a steady upgrade after Shapella. Among other altcoins, Avalanche’s AVAX token recently surged over 7% to trade at around $20.7. Perpetuals-focused decentralized exchange dYdX’s DYDX token rose 5% to trade above $3.
The CoinDesk Market Index (CMI), which measures the overall performance of the crypto market, was down 2% for the day.
After a rally late last week, crypto-related stocks also fell on Monday: Shares in Coinbase ( COIN ) and bitcoin miner Marathon Digital Holdings ( MARA ) lost over 3%, while business software firm — also known as a major BTC holder — MicroStrategy ( MSTR) went south by 5%.
Stock markets were mixed as investors awaited earnings reports from a number of major banks, including Bank of America and Goldman Sachs. The S&P 500 and technology-heavy Nasdaq were down 0.1% and 0.2% respectively. The Dow Jones Industrial Average (DJIA) was almost flat.
