The cryptocurrency market saw a pullback today, with Bitcoin, Ethereum, Dogecoin, and Cardano all under pressure. Over the past 24 hours, the market dipped by 1.72%, despite holding a 3.14% gain over the week. The sentiment of investors declined following recent surges in prices, and profit-taking, regulatory delays, and heavy liquidations contributed significantly to the decline.
Reasons Why Bitcoin, Ethereum, Dogecoin, and Cardano Are Struggling
Ethereum led liquidations, recording $61.6 million in total, with $40.4 million coming from long positions. Following recent profits, traders started to lock in profits, leading to a price drop in major tokens. Dogecoin and Cardano dropped by 4% and 3%, respectively.
Liquidations amounted to 53.64 million in Bitcoin, mostly through long orders. This liquidation of leveraged positions enhanced selling, which enhanced the downward trend across the market.
Bitcoin and other digital tokens have declined due to a delay of an important crypto market structure bill by a committee in the U.S. Senate. The regulatory uncertainty was further extended by the delay, which made traders cut down their exposure.
The market mood returned to a neutral level, as it was in the Crypto Fear & Greed Index. Traders were wary, and they pulled back when wider markets were giving mixed signals.
Bitcoin and Ethereum Face Pressure as Market Trends Turn Bearish
At the time of writing, the BTC price traded at $94,773 with a 2% decrease over the past 24-hours.
Bitcoin price has recently tested the $95,000 resistance zone, but the outlook remains uncertain.
If Bitcoin manages to break through this level, the price could rally toward the $96,000 zone. Should the bullish momentum persist, a move toward $100,000 as per the full Bitcoin forecast report.
Nonetheless, in case bearishness persists, there could be a correction of Bitcoin into the $90,000 correction range.
Source: TradingviewLikewise, Ethereum has also failed to continue its bullish trend, declining by 1.59% to $3 276. The resistance was encountered at the price of $3,400, which created a bearish divergence, and the price has since reversed.
Ethereum had briefly gone above $3,400, but has since withdrawn due to market weakness. In case of a further continuation of the bearish direction, Ethereum price may fall even lower to the level of the $3,100 range. Nevertheless, with the bulls back in charge, there is a chance that Ethereum may start recovering to $3,400.
Dogecoin and Cardano in a Critical Spot as Bearish Pressure Mounts
Dogecoin has also seen a 4% decline over the last 24 hours, trading at $0.1362. This pullback follows a week of strong bullish performance. Dogecoin price is now standing at a crossroad where the selling pressure is mounting towards the $0.15 level.
Any break above $0.14 would initiate a move to $0.15, and on breaking $0.1620, would be able to hit the $0.16 zone. Nevertheless, further decline to less than $0.140 might drag Dogecoin to the $0.135 support level.
The price of Cardano decreased by 3.78% within the last 24 hours, and currently its price is $0.3830. Despite a previous rise in the week, Cardano is currently dropping.
To experience a potential bullish recovery, ADA would have to break above the resistance level of $0.40, and high volume would be required. In case of success, it may aim at the $0.44 level, yet unless there is any substantial uptrend, Cardano might still be in trouble.
Source: https://coingape.com/trending/top-reasons-why-bitcoin-ethereum-dogecoin-and-cardano-are-under-pressure-today/
