The Sharp Fall in Bitcoin Shook the Market! What is the Reason for the Fall in BTC? Will the Fall Continue? Analyst Said 'Yes' and Warned!

Sharp Decline in Bitcoin and Altcoins: Factors and Outlook

The leading cryptocurrency, Bitcoin (BTC), and its altcoin counterparts have witnessed a significant decline in value over the past 24 hours. BTC has dropped by approximately 6% to levels below $60,000, while several altcoins have experienced double-digit losses.

Among the notable altcoins, Ethereum (ETH) has declined by a substantial 8.4% to $2,467. Solana (SOL), a top 10 cryptocurrency, has lost 7.4% to reach $147.5. Dogecoin (DOGE) has also suffered a 6.5% decline, trading at $0.099.

Multiple Factors Contribute to the Decline

Analysts attribute the recent decline in Bitcoin to a combination of factors. According to BTC Markets analyst Rachael Lucas, Bitcoin's fall is not attributable to a single cause.

Lucas highlights several factors, including an oversold US Dollar Index (DXY), portfolio adjustments, and seasonal effects known as the "September Effect," which has historically influenced market performance.

"Today's decline in crypto markets cannot be attributed to a single reason. It appears to be a confluence of factors," suggests Lucas. "Technical indicators indicate that the US Dollar Index is oversold on the daily chart, implying a potential recovery in the dollar, which has historically exerted downward pressure on cryptocurrencies."

"Additionally, the 'September Effect' has traditionally led to underperformance in Bitcoin and crypto markets due to portfolio rebalancing and increased caution ahead of upcoming US elections."

Analyst Expects Further Decline

Lucas has cautioned that if Bitcoin continues to trade below its 50-day moving average, a key technical level, the price could potentially drop to around $56,000 in the near future.

Disclaimer: This information does not constitute investment advice.