CEX.IO company blog | Bitcoin price fell below $ 50,000 - what will happen next for the first cryptocurrency?

Today, April 23, the first cryptocurrency fell below $50,000. Yuri Mazur, head of data analysis at CEX.IOBroker, shared withForklogyour thoughts on what caused this and what market participants should expect in the near future.

On April 20, Bitcoin trading closed lower50-day moving average, below which it dipped the day before. This was evidence of a clear lack of demand among investors for bitcoin in order to compensate for the drop since April 14. Taking into account the obvious tendency to continue the decline, a full-fledged reversal of the uptrend becomes the most likely scenario for the development of price dynamics.

This can be confirmed by the breakdown of the local support level at $ 55.945 on April 21 with the closing of the trading pair at $ 53.946 according to the trading data on CEX.IO.

Also the recent news of the sudden closurethe largest Turkish cryptocurrency exchange Thodex may have a negative impact on the cryptocurrency market. At the time of the close of the exchange, the amount of cryptocurrency funds of its users was about 2 billion US dollars. And US President Joe Biden proposed raising the capital gains tax to 39.6%. Both of these news could accelerate Bitcoin's decline in the short term.

With such a significant drop in the bitcoin ratedo not expect a significant strengthening of altcoins. It is too risky and does not bode well for significant dividends. Now it is worth looking at the altcoin price on a crypto market data aggregator - for example, CoinGecko, to make sure that the average altcoin market price falls by 10% - 20% over the last 24 hours. Ethereum, according to trading data on CEX.IO, is losing 8.3% against the US dollar since the opening on April 23, and at the moment it was losing more than 12%

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