Bitcoin’s price briefly fell back below $60,000 late Tuesday amid a broader cryptocurrency market downturn.
Bitcoin Bitcoin
-6.16%
At the time of writing, it had fallen 5.4% over the last 24 hours to $59,600. Bitcoin price page on the block. Ether is down a significant amount of around 7.7% and is currently trading at $2,480.
Among Among the top 10 cryptocurrencies, Solana was down 7% to $147.50, while Dogecoin was down 6.3% to $0.099. The cryptocurrency market is down 6.3% over the past day, according to data from The Block..
“There is no single catalyst for the crypto bear market today, but rather a combination of factors,” BTC Markets crypto analyst Rachel Lucas told The Block. “Technical indicators show the U.S. Dollar Index (DXY) is oversold on the daily chart, which could signal a possible greenback rally, which traditionally puts downward pressure on riskier assets like crypto.”
Lucas added that seasonality can play a role in market declines, with the “September effect” traditionally causing markets to underperform due to portfolio rebalancing, tax loss harvesting and increased caution ahead of the U.S. election.
Analysts cite a number of factors
According to crypto analysts, the numerous cryptocurrency liquidations reported over the past day have exacerbated these negative factors. According to Glassnode data, $287 million worth of long crypto positions were liquidated over the past 24 hours.
“Short-term volatility has been bought as fundamental momentum remains weak due to oversupply and lack of on-chain catalysts in the short term, and traders are rushing to buy downside protection (puts),” said Augustine Fan, head of insights at SOFA.org.
Ether price Spot ether ETFs suffered further setbacks on Monday, reporting an eighth straight day of negative flows as they reported extended net outflows.
Ethereum
-8.59%
“ETFs continue to see sluggish momentum as the Ethereum mainnet remains mired in an identity crisis,” Fan said.
“ETH is struggling more than other cryptocurrencies because the Ethereum Foundation is being criticized for its $100 million budget from selling ETH, which will create more selling pressure,” independent market researcher Nick Ruck also said in a statement.
Lucas of BTCMarkets predicted that Bitcoin could drop to a low of around $56,000 in the short term if it continues to trade below the 50-day moving average, a key technical level on the daily chart. Bitcoin’s 50-day moving average is currently at $61,991. data On TradingView.
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