Are the Bears Back? Why the Market Took a Dive Today

April 25, 2024

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So, you might have noticed that the crypto market took a bit of a nosedive recently. Bitcoin went under $64,000, and it seems like everything else followed suit. Are the bears back? What exactly happened? Let’s break it down without the jargon.

TL;DR: Bitcoin took a dip, dragging the rest of the market down with it. Blame it on tensions in the Middle East, some arrests in the crypto world, and the usual post-halving drama. Or, is it as simple as the bears are back?

Only 2 days ago, we smashed a long position with $BONK earning a whopping 350% in a day. We were hoping to find more long trades next, but one thing is clear with crypto. When things are going too well, prepare for the worst.

What Went Down to bring the bears back

Bitcoin’s price took a dip below $64,000, causing a panic in the market. But why? Well, a few reasons are floating around.

Geopolitical Drama

You know how things can get a bit heated in certain parts of the world? Yeah, that happened. Tensions rose between Israel and Iran, making investors a bit jittery. When people are nervous, they tend to move away from riskier stuff like crypto and into safer bets. On top of that, the President of the United States signed a bill to provide an aid package for Ukraine. Which caused some uncertainty around the whole Russia-Ukraine-USA situation.

Politicians just love to ruin a good crypto pump, don’t they?

Crypto Crackdown

Ever heard of Samourai Wallet? Yeah, their founders got into a bit of trouble with the law. The U.S. Department of Justice wasn’t too happy with them and slapped them with charges related to money laundering. That news shook things up in the crypto community, adding another layer of uncertainty.

Post-Halving Funk

Remember the Bitcoin halving? That thing where the supply of new Bitcoins gets cut in half? Well, that happened recently, too. Historically, this event tends to make the market a bit wobbly as everyone adjusts to the new normal. Add that to the mix, and you’ve got a recipe for some serious volatility. Some might argue that the uptrend of the past few months was the market already pricing in the halving event.

Naturally, if something is priced in already, we have to see a correction in the opposite direction.

The Fallout

The market didn’t take the news too well. Over $200 million in liquidations went down in the past 24 hours. That’s a lot of people hitting the panic button. Bitcoin and Ethereum took the biggest hits, but altcoins like Solana, Dogecoin, Pepecoin, Shiba Inu, and Avalanche weren’t spared either.

In other words, the whole market took a dump.

Our Trade Set-Up

Now, how can we play this market?

First off, some important levels to watch for Bitcoin are:

  • $60,000 for support
  • $52,500 for next support
  • $64,700 first resistance, an important level to retake to remain bullish
  • $69,200 next resistance

We are currently not in any position, but have a long order on small leverage open at $60k, with a first take profit target of $64.7k.

Secondly, we are eying the Bitcoin Dominance charts for hints of an altcoin season starting.

Currently, the BTC dominance was rejected at a major resistance level of 57.50%. It is now heading to test a diagonal support level at 55%. If that breaks downwards, the next support level is at 48.77%, which could indicate altcoins outperforming BTC over the next few weeks.

We have to keep an eye on that support level of 55%, and while we have this chart open, we make sure to look at a few meme coins and mid-caps. To name a few that we are eying: Wormhole (already took a spot position), Ethena, Jupiter, and $WIF. In case one of these forms a pattern that looks like a good trading spot, we will update you with a new blog.

What’s Next

So, where do we go from here? Well, it’s hard to say. The market’s recovery depends on a bunch of factors. We’ll have to wait and see how things play out with those geopolitical tensions, the Samourai Wallet saga, and whether Bitcoin can shake off its post-halving blues.

Hang tight, crypto fam. For now, the bears are back. Rollercoaster rides like these are just part of the game. Keep calm and hodl on!

If you enjoy our content, you can support us by signing up for a Bybit Account with our referral link. Don’t forget to claim your bonuses if you buy/sell or trade crypto.

You might also like our other trading blogs.

bitcoin
Bitcoin (BTC) $ 71,022.03 6.53%
ethereum
Ethereum (ETH) $ 3,677.92 18.92%
bnb
BNB (BNB) $ 598.23 3.84%
solana
Solana (SOL) $ 184.44 6.81%
pepe
Pepe (PEPE) $ 0.000011 19.00%
dogecoin
Dogecoin (DOGE) $ 0.163036 7.87%
shiba-inu
Shiba Inu (SHIB) $ 0.000025 6.26%
injective-protocol
Injective (INJ) $ 28.28 15.92%
sei-network
Sei (SEI) $ 0.586429 13.03%
tron
TRON (TRX) $ 0.122988 1.18%
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