The total cryptocurrency market cap slipped over 6 percent in the past 24 hours to about $2.24 trillion on Wednesday, during the mid-London session. For the first time since February 2024, Bitcoin’s (BTC) price has dropped below the support range between $59,000 and $61,000 to trade around $57,123 at the time of this writing.
Following the heightened volatility, nearly half a billion dollars has been rekt in the crypto leverage trading, mostly involving long trades.
Top Reasons Bitcoin and Crypto Prices Dropped
Later today, the United States Federal Reserve will release crucial market data, including the benchmark interest rates and the FOMC statement. Today’s federal rate data will give guidance on expected interest rate cuts later this year.
The high expectations of the approval of spot BTC and ETH ETFs in Hong Kong cooled off after the products managed a significantly small fraction of similar US-based products.
Meanwhile, the cryptocurrency market has been absorbing the four-month imprisonment of former Binance CEO Changpeng Zhao (CZ) in the United States.
Key Levels to Watch Ahead
According to a popular crypto trader and analyst alias Mags on the X platform, Bitcoin price cannot afford to close below $57,500 in the coming days if the bullish momentum is to continue. The crypto analyst argued that Bitcoin price has been undergoing correction phases of between 20-22 percent, thus making the range between $57,500 and $58,000 the plausible support level.
#Bitcoin – $57,500 should be the bottom or its over ?
On the weekly chart, the price is trading below the weekly support zone of $60,000.
I see a lot of people calling for $50,000. The problem with this is if the price closes below the blue box, it would make the price action… pic.twitter.com/CQ9M9rNDC3
— Mags (@thescalpingpro) May 1, 2024
The crypto analyst, therefore, concluded that Bitcoin price could drop as much as below $40k if the current support level fails. As a result, another bull run will be recorded in the fourth quarter after a macro consolidation.
