Why is crypto down today? Bitcoin sheds 4.3% in 24 hour trading

Notably, total volume across the market increased to $121 billion yesterday, representing a growth in trading activity. During a market downturn, a surge in trade volume suggests an increase in selloffs. Despite a slight drop, volume has remained above the $100 billion mark, currently amounting to $112.7 billion.

In addition, Coinglass data confirms that Bitcoin derivatives volume has increased by 10.31% in the last 24 hours to $98.1 billion as of press time, with the long/short ratio sitting at 0.9573. This figure indicates a confluence of increased derivatives trades and a predominant bearish sentiment.

The prevailing bearish pressure has persisted despite the upcoming halving event, expected to bolster Bitcoin’s price action by reducing the daily inflation rate. Interestingly, Crypto.com CEO Kris Marszalek warned that this downturn would persist before the halving, slated for the next three days.

Exchanges have also witnessed increased Bitcoin inflows, signaling a rise in selling pressure. Moreover, the tension around the looming Iran-Israel conflict has not fully subsided, with reports suggesting that Israel plans to retaliate to the attack from Iran.

At its current price point, Bitcoin needs to break above the 50-day EMA at $64,735 to record a shift in short-term sentiments from bearish to bullish. However, the asset would face stern resistance at $64,200, aligning with Fibonacci 0.236.