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Bitcoin fell for the first time since early March to $59,900 as cryptocurrencies fell on Wednesday.
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Order book data on major spot exchanges shows demand is below $60,000, which could halt the decline.
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The crucial support level for BTC to watch is $59,000, according to LMAX’s Kruger.
Bitcoin {{BTC}} has given up on a full recovery from Saturday’s panicky sell-off, falling below $60,000 in the morning hours of the US trading session on Wednesday.
After recovering above $64,000 earlier Wednesday, Bitcoin fell to a low of $59,900, down more than 3% in the past 24 hours and its weakest price since early March. At the time of writing, it was trading at $60,200.
Ether {{ETH}}, the second largest crypto asset by market cap, plummeted below $3,000 and fell 2.5% over the same period.
The weakness echoed through most crypto markets, with all CoinDesk Market Index (CMI) sectors are in the red, while the broad market CoinDesk 20 Index lost 1.8%.
The spot market order book for BTC-USDT on crypto exchange Binance, the most liquid trading pair, shows bids below $60,000, exceeding sell orders. This indicates strong demand below that level, which could prevent further price declines, at least in the short term.
Today’s decline confirmed that cryptocurrencies are experiencing a cool-down phase after a multi-month rally that peaked last month. Bitcoin has since lost more than 15% from its last all-time high, while some altcoins have retreated 40%-50% from their recent highs, which is not unusual in previous crypto bull market pullbacks, it showed from data from Glassnode.
Read more: Is the Bitcoin Rally Over? Reasons to remain optimistic about BTC despite correction
The behavior of Bitcoin investors indicates that market weakness could continue for a while major investors haven’t yet started buying the dip at current prices, said Joel Kruger, market strategist at LMAX Group, in a Wednesday market update.
“The latest blockchain data shows that major holders of bitcoin are refraining from increasing exposure to the current dip, suggesting we could see some more weakness or consolidation before bitcoin is ready to take off again,” Kruger said.
The crucial technical level to watch for BTC is $59,000, pointing to a significant support zone where prices recovered twice through March, he added.
“If bitcoin can stay above this level, the immediate focus remains on the next step towards a new all-time high towards $100,000,” Kruger said. “On the other hand, if we see more downside pressure that translates into a breakdown below $59,000, this will delay the near-term bullish outlook and open the door for a more meaningful correction in the $45,0000-50,000 area.”
UPDATE (April 17, 16:11 UTC): Adds order book data.
