Cryptocurrency markets and broader global financial markets were under pressure on April 26 after the hype surrounding Elon Musk’s takeover of Twitter began to fade and concerns about the state of the global economy were back in focus.
Tech-related stocks were among the hardest-hit assets on April 26, and cryptocurrency prices fell sharply as risk assets took an unwelcome role in these volatile markets.
After holding support at $40,500 during the morning session on April 26, the price of Bitcoin (BTC) fell 6.21% to a low of $38,009 in afternoon trade, data from Cointelegraph Markets Pro and TradingView show.
April 26’s price action appears to be a continuation of the month’s weakness in financial markets, with the S&P 500 down 7%, the Nasdaq down 11% and the Dow down 3% so far this month.
The bearish trend in FAANG stocks is essentially dragging down the weight of the broader market, with the recent 35% drop in Netflix’s price on April 20, highlighting a major problem in the “strong market” narrative.
Bitcoin retests its macro range low
The April 26 sell-off in Bitcoin price has led many analysts to reiterate that we are heading 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 Shows the price retesting the major support area.
Rekt Capital said:
“BTC is returning to long-term macro high-low support.”
According to the analyst, BTC continues to trade in the range it has been stuck in since the beginning of the year, and there is still strong support in the sub-$30,000 range.
Related: Bitcoin fails to hold $40k, traders still hope for BTC price rally
Crypto Twitter analyst Miles J Creative said further insight into the weakness in global markets can be seen by looking at the strong performance of the DXY, which is currently at its highest level in two years.
“The dollar is in danger zone. To the moon or to Goblin Town?”
The fate of the market may depend on how the dollar moves amid rising inflation, ongoing supply chain disruptions and global conflict in Europe.
The overall cryptocurrency market cap is currently $1.605 trillion, with Bitcoin dominance at 45.5%.
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