Bitcoin barely holds on to $60k as bears retest March lows

Bitcoin (BTC) took a downturn below $60,000 on April 17 as US markets began trading, marking a return to prices last seen in early March before the digital currency rallied to new heights.

The flagship crypto touched a low of $59,658 before modestly recovering to around $60,800 as of press time, based on CryptoSlate data.

Bitcoin was clinging to the $60,500 support level after a slowdown in sell pressure, with bulls attempting a potential recovery above $61,000.

Market turbulence

The drop comes at a time of general market turbulence, with both Bitcoin and traditional equity markets showing signs of strain.

Bitcoin last dipped to these levels on March 5, just before rocketing to a record-breaking $73,780 on March 13. Since reaching that peak, BTC has experienced significant fluctuations — trading in a massive range between $59,000 and $72,500 since the start of April.

Experts attribute the ongoing market volatility to various macroeconomic issues, including persistent inflation in the United States. Similarly, key stock indices such as the S&P 500, Dow Jones, and Nasdaq were all reported to be down today, reflecting broader economic uncertainties.

Further adding to the market’s cautious sentiment, Federal Reserve Chair Jerome Powell indicated in a recent press briefing that the central bank could delay the anticipated rate cuts further.

Powell noted that recent data has not bolstered confidence in the economy, suggesting a slower recovery path than expected.

Altcoins mirror Bitcoin

Ethereum (ETH) also saw a decline, briefly falling below $3,000 to a low of $2,914 before stabilizing around $2,970 as of press time.

Meanwhile, BNB fell to a low of $512 for the day, while Solana (SOL) hit $126.8 before both tokens recovered to around $525 and $130 as of press time.

The timing is critical as Bitcoin is approaching its halving event this weekend, which will reduce the block reward from 6.25 BTC to 3.125 BTC, potentially influencing Bitcoin’s value in the short term due to decreased supply pressure.

Investors are closely monitoring the impending halving, set to take place between late Friday and early Saturday, as the event has historically triggered significant price movements.

As the market braces for this crucial event, the ongoing geopolitical and economic factors continue to cast a wide shadow, suggesting that the crypto market’s notorious volatility is far from over.