Despite the positive dynamics of price changes and increasing demand, bitcoin failed to gain market support after reaching an all-time high. This led to a powerful collapse of asset quotes by 10%, to $50,000. Such a sharp jump came as a surprise to the growing market and provoked significant losses among traders.
After reaching a new record, bitcoin held a safe position in the region of $62,000. Even local price adjustments could not move the asset off the target. In addition, horizontal trading volumes indicated clear support for the cryptocurrency in the region of $60,000-$62,000. It is quite a normal situation when, after reaching the next record, the asset undergoes a temporary correction necessary for further growth. In this situation, the position of bitcoin would not have decreased abroad by $60,000. However, all other things being equal, this worked, which was not observed in the market at that time.
First of all, the market was engulfed by a wave of instability against the backdrop of a direct listing of Coinbase shares. Despite the clearly positive color of the event in the long term, it caused trouble for cryptocurrencies locally. Fluctuations in the asset were exacerbated by growing demand, which was overstated at current growth rates. The final point in the loud fall of bitcoin was played by the negative news that the Central Bank of Turkey prohibits the use of cryptocurrencies in the country. It is the combination of negative events in the market and in the information space that caused such a sharp drop in BTC/USD quotes.
In addition, the sharp decline in bitcoin was caused by the sharp rise that preceded it. In other words, the volatility of the asset caused a more powerful than expected correction. The more stable a cryptocurrency is during growth, the more calmly it will endure market edits. This is clearly seen in how quickly bitcoin regained its position to $56,000, where the asset a week ago secured the support of the market just because it approached this level for a long time and expected prices to consolidate.
The sharp drop in bitcoin significantly crippled the position of the asset. As of 10:00 UTC on April 19, the BTC/USD pair is trading at $56,600. Over the past 24 hours, the cryptocurrency has risen in price by 4.3%, recovering from two weeks ago. It should be noted that this happened against the background of a sharp increase in demand for the asset, associated with an obvious rise to higher indicators. The daily trading volume at the time of the maximum growth of bitcoin quotes reached $98 billion, but as of 10:00 UTC, it decreased to $71 billion.
Soon, the price of bitcoin will entirely depend on the market sentiment, as well as the news background. Now the cryptocurrency is going through an extremely dangerous stage of determining the dynamics of changes in indicators. Even though the asset is in an upward trend, its capitalization dropped to $1 trillion. Also, the main altcoins weathered the market downturn much easier, which negatively affected the percentage of BTC dominance - it decreased by 2.5% to 49.5%. The main cryptocurrency is entering the new workweek in an extremely suspended state, which may change in the next 4-5 days.