Bitcoin fell below $70,000 for the first time in two months on Tuesday. According to Bitstamp data, the price dropped to $69,631 during the day. While stock markets maintained their course near record levels, it was noteworthy that the weakness in crypto assets continued.
Selling pressure deepened
After failing to accompany the rise in the stock markets, the BTC/USD parity diverged more clearly from other risky assets and lost approximately 2 percent of its value during the day. This movement created a new floor, indicating that the selling pressure continues in the short term.
The harsh movement in the market also had its effect on leveraged transactions. According to CoinGlass data, total liquidations in Bitcoin and altcoins in the last 24 hours approached 800 million dollars. CoinGlass is among the popular data platforms that track liquidation data in crypto derivatives markets.
Stating that the pressure in the market has increased, trader Ardi stated that when support levels begin to break in different time periods, it is normal for the price to move to the next large liquidity area, and in his own follow-up, this level is around $ 68,700.
Analysts are watching the 200-day average
Market analysis platform Material Indicators announced that one of its trading indicators showed a cautious picture in its evaluation shared on Monday. The platform stated that it should be monitored whether the current movement will turn into a bottoming process or start a new leg of the decline.
In the same evaluation, it was stated that if the downward trend continues, the 200-day simple moving average may come to the fore again. This indicator stands out as one of the key metrics frequently used in technical analysis to follow the long-term trend.
Mini dictionary: The 200-day simple moving average shows the average of an asset’s closing prices over the last 200 days. It is frequently monitored to evaluate long-term support and resistance areas in the markets.
Material Indicators noted that if the monitored price range cannot be maintained by buyers, the outlook may deteriorate further and the market may enter a more significant decline phase.
Geopolitical uncertainty and market divergence
The pressure on Bitcoin is not only based on the technical outlook. Uncertainty regarding the ceasefire process between the USA and Iran was also cited as one of the factors affecting market sentiment. While assessments that the agreement was unlikely to succeed came to the fore on Monday, US President Donald Trump announced that negotiations were continuing rapidly.
During this period, US stock markets painted a different picture. The S&P 500 index reached a new peak above 7,600 points, then experienced a limited retreat. The Kobeissi Letter pointed out that if the index maintains this momentum, it could rise for 10 consecutive weeks for the first time since 1985.
The same source stated that the share market value has increased by 11.7 trillion dollars since March 30. Thus, the difference between the strong outlook in traditional markets and the cautious atmosphere in crypto assets became even more evident.
