Why is crypto down today? Bitcoin sheds 4.3% in 24 hour trading

Bitcoin (BTC) has experienced a 4.3% decline in the last 24 hours, triggering a widespread downturn across the broader cryptocurrency market as investors opt to exit the market around the break-even point following a recent recovery effort.
Following a surge in multiple assets, including Bitcoin, which reclaimed the $66,000 price level on April 15, the global cryptocurrency market cap reached $2.384 trillion. However, after reaching a high of $66,867, Bitcoin saw a subsequent drop, hovering around the upper range of the $61,000 mark before initiating a recovery from that level. Despite this upward movement, Bitcoin faced a 4% decline within the past day, currently trading at $63,250.
As a result, the crypto market has shed over $79 billion in value over the last 24 hours, with the global market cap currently standing at $2.243 trillion. One significant factor contributing to this sudden downturn is an increase in sell-offs as market participants rushed to exit the market around the break-even point following the rebound.
Notably, trading volume across the market surged to $121 billion yesterday, indicating heightened trading activity. During market downturns, a surge in trading volume typically signifies increased sell-offs. Despite a slight decrease, the volume remains above the $100 billion mark, now at $112.7 billion.
Additionally, data from Coinglass confirms a 10.31% increase in Bitcoin derivatives volume over the past 24 hours to $98.1 billion, with the long/short ratio at 0.9573. This suggests a combination of heightened derivatives trading and a prevailing bearish sentiment.
Despite the forthcoming halving event, which is expected to bolster Bitcoin's price action by reducing the daily inflation rate, the current bearish pressure persists. Kris Marszalek, CEO of Crypto.com, has cautioned that this downturn may continue leading up to the halving event in the next three days.
Exchanges have observed increased Bitcoin inflows, indicating rising selling pressure. Moreover, concerns surrounding the ongoing Iran-Israel conflict remain, with reports suggesting potential retaliation from Israel in response to attacks from Iran.
At its current price level, Bitcoin must surpass the 50-day Exponential Moving Average (EMA) at $64,735 to indicate a shift in short-term sentiment from bearish to bullish. However, the asset is likely to encounter significant resistance at $64,200, aligned with the Fibonacci 0.236 level.

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