Altcoins sell-off as Bitcoin price drops to its ‘macro level support’ at $38K

The cryptocurrency market and wider global financial markets fell under pressure on April 26 after the hype surrounding Elon Musk’s purchase of Twitter began to fade and concerns about the state of the global economy took the forefront again. Tech-related stocks were some of the hardest-hit assets on April 26 and this pullback was followed by sharp declines in crypto prices as risk assets become persona non grata in these turbulent markets. Data from Cointelegraph Markets Pro and TradingView shows that after holding support at $40,500 through the early trading hours on April 26, the price of Bitcoin (BTC) dumped 6.21% in afternoon trading to hit a low of $38,009. April 26’s price action looks to be a continuation of the weakness seen across financial markets this month, and month-to-date, the S&P 500 is down by 7%, while the Nasdaq declined 11% and the Dow is nursing a 3% loss. The bearish trend in FAANG stocks has essentially been a weight that has dragged down the wider market and the recent 35% decline in the price of Netflix on April 20 highlighted a major kink in the “strong markets” narrative.

Bitcoin retests its macro range low

April 26’s sell-off in the price of Bitcoin has led many analysts to reiterate that we are headed for a bear market bottom, but not everyone has such a dire outlook, including crypto analyst and pseudonymous Twitter user Rekt Capital, who posted the following chart showing the price retesting a major support zone. According to the analyst, BTC continues to trade within the range it has been stuck in since the beginning of the year and there is still a strong amount of support in the lower $30,000 range. Further insight into the weakness across global markets can be found by looking at the strong performance of the DXY, which is currently at its highest price in two years, according to crypto Twitter analyst Miles J Creative. The analyst said,

“Dollar coming into the danger zone. To the moon or goblin town?”

The fate of the market will likely hinge on how the dollar performs moving forward amid rising inflation, ongoing supply chain disruptions and the global conflict in Europe. The overall cryptocurrency market cap now stands at $1.605 trillion and Bitcoin’s dominance rate is 45.5%.