The Crypto Market Is Slowing Down Dangerously: Should We Expect The Worst?

The crypto market's bullish momentum is waning. While the total market capitalization remains relatively stable around $2.52 trillion, declines in Bitcoin, Ethereum, XRP, and Dogecoin raise concerns about a potential bearish trend. Several traders fear a downward cycle due to persistent technical resistance. The already weakened market could easily tip if a rebound doesn't occur soon.

Significant Declines and Market Pressure

Following a brief period of optimism, the crypto market is experiencing renewed weakness. On Friday, Bitcoin traded around $79,496, down 3.1% in 24 hours. Ethereum fell 7.5% to $1,516, XRP dropped 3.6% to $1.95, and Dogecoin decreased 4.1% to $0.1535.

This widespread decline coincides with decreasing investor participation, evidenced by reduced trading volumes on various platforms. The number of active addresses decreased by 2.2%, while the volume of transactions exceeding $100,000 surprisingly increased by 30.9%, rising from 10,153 to 11,411 in a single day, suggesting increased activity from large holders.

Further data supports this shift:

• Coinglass reported $337.28 million in liquidations across 110,680 positions over the past 24 hours.
• Net exchange flows plummeted 268%, indicating significant net withdrawals from platforms.
• Altcoins, including Solana (-6.5%) and Shiba Inu (-2.9%), mirrored the negative trend, reflecting a broader aversion to risky assets.

This sudden reversal caught many off guard, highlighting the fragility of the recent bullish sentiment.

Bearish Technical Signals and Diverging Opinions

Analysts like Follis and others express concerns about a potential relapse if the current trend doesn't reverse quickly. Inmortal, a social media analyst, noted on April 10, 2025, on platform X (formerly Twitter), that " without a solid rebound here, we could test new lows." They also mentioned the risk of liquidity compression, common during market transitions. Ali Martinez, on April 10th on platform X, highlighted a potential "death cross" on the daily BTC chart (the crossing of the 50-day and 200-day moving averages), a traditionally bearish technical indicator.

Miles Deutscher's analysis reinforces this cautious outlook, noting a significant decrease in overall transaction volume, attributing it to typical summer months compression. However, Deutscher also suggests this could create inefficiencies " ready to correct quickly once volume returns," hinting at the possibility of renewed upward volatility, contingent on favorable market conditions.

The short-term crypto outlook hinges on technical signals and investor behavior. While some predict a recovery after key resistance levels are broken, others anticipate a prolonged decline or even a new bearish cycle. The current apparent calm may be deceptive, and any significant shift could dramatically alter market dynamics.