Bitcoin’s price has fallen to a daily low of $122,568, marking an end to the stable daily upward trend it has maintained for some time. This downturn suggests a pause in its rally or potentially a deeper correction that might impact altcoins negatively. What exactly is happening in the market?
Altcoins See a Decline
Bitcoin has dropped to a daily low and at the time of this writing, it finds buyers at $122,800. Closing below this daily support could lead to a fall under $120,000. Jelle, who has been optimistic about Bitcoin reaching the midpoint of an 8-year-old ascending channel, holds hope despite this drop.
In the past two years, Bitcoin has attempted to break this level numerous times but failed. If the current drop results in rejection at this critical point, the consequences could be troubling for altcoins. Roman Trading mentioned expecting a decline due to negative patterns seen in long-term charts. Recently, Columbus claimed that Bitcoin would create a lower wick soon and sell to buy altcoins at a cheaper rate. If this happens, it will not come as a surprise to them.
The U.S. government shutdown continues and we haven’t seen any significant developments on the macroeconomic scene. Nasdaq turned bearish and the S&P 500 is following suit. Likely due to a correlation that turned positive again, the sales in the stock market seem to be affecting cryptocurrencies. Although Fed member Miran made supportive statements on easing, they proved ineffective. Over the past hour, $101 million worth of liquidations occurred, with $85 million from long positions.