Altcoins sell-off as Bitcoin price drops to its ‘macro level support’ at $38K

The cryptocurrency market and broader global financial markets came under pressure on April 26 after the hype around Elon Musk’s purchase of Twitter began to fade and concerns about the state of the global economy resurfaced. be in the foreground.

Stocks related to technology were some of the hardest hit assets on April 26 and this pullback was followed by sharp declines in crypto prices as risky assets become persona non grata in these turbulent markets.

Data from Cointelegraph Markets Pro and TradingView shows that after holding support at $40,500 during early trading hours on April 26, Bitcoin (BTC) fell 6.21% in afternoon trading to reach a minimum of $38,009.

BTC/USDT 1-day chart. Source: TradingView

The price action on April 26 appears to be a continuation of the weakness seen in financial markets this month, with the S&P 500 down 7% YTD, while the Nasdaq is down 11% and the Dow taking a loss. of 3%. .

The downtrend in FAANG stock has essentially been a weight dragging the broader market down and the recent 35% drop in Netflix price on April 20 highlighted a major twist in the “strong markets” narrative. “.

Bitcoin retests its macro range low

The April 26 sell-off in Bitcoin price has prompted many analysts to reiterate that we are headed for a bear market bottom, but not everyone has such a dire outlook, including pseudonymous crypto analyst and Twitter user Rekt Capital. , who aware The chart below shows the price retesting a major support zone.

BTC/USD 1-week chart. Source: Twitter

RektCapital said:

“BTC is back at longstanding Higher Low macro support.”

According to the analyst, BTC continues to trade within the range it has been stuck in since the beginning of the year and there is still a lot of support in the lower $30,000 range.

Related: Bitcoin Fails to Hold $40K and Traders Still Wait for BTC Price Relief Bounce

Further insight into the weakness in global markets can be found by looking at the strong performance of DXY, which is currently at its highest price in two years. according to Twitter cryptanalyst Miles J Creative.

1-day DXY chart. Source: Twitter

The analyst said,

“The dollar enters the danger zone. To the moon or to the elf town?

The fate of the market will likely depend on how the dollar performs amid rising inflation, ongoing supply chain disruptions and global conflict in Europe.

Cryptocurrency market daily performance. Source: Coin360

The total cryptocurrency market capitalization is now $1.605 trillion and the dominance rate of Bitcoin is 45.5%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should do your own research when making a decision.