Dipping crypto prices continue to send mixed signals

Bitcoin slid below $27000, towards its lowest mark in two months, as the dipping crypto market did not offer any respite.

Bitcoin started to decline steadily from the late hours of May 11, as it fell below $27000 and neared the $26000 mark. The decline was not a sudden one, but the dipping crypto prices across the market could be a sign of further losses in the next few days. 

On the upside, the current downward trend could prove to be an opportunity for several investors to re-enter the market with a bullish outlook. While Bitcoin’s 50-day moving average is hovering above $18000 presently, it has turned red in the 5-day and 20-day signals.

The crypto market’s overall capitalization decreased below $1.20 trillion, suffering a loss with several altcoins like XRP, Cardano, Dogecoin, and Polygon in the red. Ethereum has also dipped to $1760 with a 3% negative return in the last 24 hours after trading above $1800 for a few days.

Bitcoin has been staging an upward trend since January, except for a slightly stagnant period in April and a bearish signal in March. While it is significantly above its levels of late 2022, the dipping crypto prices could steer either way, with the next support levels being at $25200 and $23200 on further dips.

BTC/USD 1D price chart

Bitcoin is currently trading at around $26300 on May 12, 2023, with BTC/USD down by around 4% in the previous 24 hours. The low levels of liquidity in the crypto market could be a major reason for the dipping crypto prices. BTC/USD is trading much below its 20-day EMA (28,358.64) as BTC’s 24-hour volume remained stationary at around $12.9 billion.

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