In the ongoing struggle in the cryptocurrency market, Bitcoin and other top cryptocurrencies experienced a massive price drop in the last two days. The major reason behind this significant price fall is the breakdown of the major support zone near the $59,800 level and the outcome of the US Fed Meeting on May 1, 2024.
Why Bitcoin is down today?
Following these two major events on May 1, 2024, the United States spot Bitcoin ETF (Exchange Traded Fund) experienced a massive outflow of over $564 million. This massive fund outflow is for the first time since January 10, 2024, as disclosed by an on-chain analytics firm, Spotonchain. However, this significant Bitcoin ETF outflow highlights investors’ as well as traders’ sentiment, which appears bearish and indicates fear in the market.
According to Spotonchain data, this is the largest single-day net outflow that the ten Bitcoin ETFs have ever experienced. The analytics firm also stated, “All ten Bitcoin ETFs had single-day outflows, notably with BlackRock iShares Bitcoin Trust IBIT seeing the first outflow since its inception.” However, this Bitcoin ETF outflow has continued for the last six trading days, marking the longest streak ever.
Bitcoin price-performance analysis
Today, on May 2, 2024, the Bitcoin price further experienced over a 3% fall, and currently, it is trading near the $57,600 level. Looking at the performance of Bitcoin over a longer period, in the last seven days, Bitcoin experienced over a 10% price fall, whereas, in the last 30 days, it experienced nearly a 15% price fall.
Despite the massive price fall in the last 24 hours, the trading volume massively increased by 22%, highlighting that there might be bulls who are still looking at this as an opportunity and accumulating. Whereas, if we look at the overall crypto market, it is currently down by 4.5%.
Source: TradingView
According to expert technical analysis, Bitcoin is looking bearish. After the breakdown of strong and lengthy consolidation, Bitcoin on May 1, 2024, experienced a breakdown and also gave a daily candle closing below the consolidation zone, which in price action terms confirms the bearish move. However, after this breakdown, it looks like in the coming days it might hit the $53,200 level as there aren’t any supports till the $53,200 level.