The broader crypto markers are in a correction mood, and Bitcoin, which was one of the top gainers till now, has slid to a 24-day low of $28,576 at the time of writing. Broader crypto markets have also shed all gains of the last 30 days. Also, OKB is a top loser today with over 10% loss. APT, a crypto project that went viral in late 2022, has also lost over 20% in the last month.
Current Direction of Broader Markets
Overall the broader markets have been performing exceptionally well in the months of Jan-Mar 2023. This was a renewed growth after the crypto winter. Bitcoin more than doubled in price in the last six months, from $15,599-$31,000.
The overall crypto markets also went from $900 million to $1,280 million in less than three months. Currently, the crypto market cap is at $1.16 trillion.
All of this triggered a panic selling due to several reasons.
People who were at a loss during crypto winter saw it as an exit.
Buying momentum was low because of regulatory actions in the USA.
The ongoing cliffhanger situation between SEC and Ripple Labs.
There were several small reasons, too, like regulatory action on Tron Foundation, which hosts more than half of USDT, and the SEC notice to celebrities who promoted cryptocurrencies.
Why is Bitcoin Falling So Rapidly?
Bitcoin and the rest of the market have been in a correction mode for the past week.
BTC Technical Analysis
The price is now at $27,600 after breaking support at $28,000. However, it has since then bounced back from its support at $27,101.
Taking a cue from technical indicators, we can infer that:
RSI is at 45, which indicates selling pressure.
MACD is in a negative crossover zone.
Trading volume is low.
If prices break this support of $27.1k, there could be another round of massive sell-off, which could plunge the prices toward $24.5k.
Hence, we can short it below $27k.
Bearish Targets: $24,500
Stoploss: $27,200
BTC On-Chain Data
Fundamentally, there is nothing bad. On-chain data shows that there is a record rate of adoption for Bitcoin and Ethereum among retail users. However, in Bitcoin, whales are selling their holdings, and very old wallets, which were left dormant for years, have now been reactivated.
OKB, Top Loser of The Day
OKB, the native token of OKX Exchange, has fallen more than 10% today, as per CoinMarketCap. There is no clear reason why it is falling so hard. We think it might be due to the selective selling in markets for cryptocurrencies with little to no utility. Another such example is Dogecoin which also plunged about 10%.
Technical charts show a bullish hammer formation. The current price is $48.5 at the time of writing. However, any gains might be short-lived because of diverging MACD and weak RSI. Our view is to avoid it until it crosses $55.
APT Suffers Setback
Aptos, a viral cryptocurrency that went from $3.17 to $18 within one month, has also lost more than 20% in the last month and is now at $10.
Technical charts look particularly bad of APT which has just broken a symmetrical triangle pattern on the downside in daily charts. Coupled with RSI and MACD, it shows a shorting opportunity.
Looking at technical indicators, we see a good opportunity to short.
RSI is weak and is now approaching the oversold zone.
MACD has shown a negative crossover.
There is a breakdown of the symmetrical triangle pattern towards the downside on daily charts.
This is a good opportunity to short.
Bearish Targets: $3 in 2 months
Stoploss: $12
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