Crypto market faces a declining trend as Bitcoin turns highly volatile

The crypto market was trading relatively flat in the afternoon hours of April 19, after which it faced a declining trend as Bitcoin dipped suddenly.

In the last 24 hours, Bitcoin tried hard to break the $31000 resistance, trading tightly in a range above its support at $30000. On the afternoon of April 19, the crypto faced a steep decline, eventually leading to a declining trend in the overall crypto market. While the reason for the sudden dip of BTC could not be determined yet, some big sell-offs of BTC might have occurred where futures mainly consisting of long positions were liquidated.

Experts have not blamed any major macroeconomic reason for the declining trend, but stakeholders of the crypto market might have to take a cautious approach and observe how Bitcoin recovers back from this position. Either it could lead to another spree of selling pressures, or long-term investors may step in and provide support for Bitcoin’s recovery.

ETH has also fallen below $2000 with the declining trend, while the crypto market’s total capitalization fell over 3%. Amongst other altcoins, Polygon, Solana, XRP and Dogecoin have traded higher in the last 24 hours. Bitcoin’s last seven-day average returns have turned to a negative three per cent.

declining trend

BTC/USD 1D price chart

Bitcoin is currently trading at around $29200 on April 19, 2023, with BTC/USD down by almost 3% in the previous 24 hours. As the crypto market faces a declining trend, most cryptos are trading downward or in mixed trajectories. BTC/USD is trading higher than its 20-day EMA (28,714.15). Bitcoin’s 24-hour volume is around $23 billion.

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