Bitcoin's price plummeted below $75,000, reaching its lowest point since early February. Currently trading around $74,500, it has experienced a decline of over 10% in the last 24 hours. This sharp drop followed Bitcoin's failure to maintain support above $80,000 the previous day.

Ethereum, XRP, and other major altcoins are also suffering. ETH is hovering near $1,430, its lowest level in over five months. XRP has fallen below $1.65, while Solana and Dogecoin have both seen double-digit percentage drops.

The entire cryptocurrency market is under significant pressure. The global market capitalization has fallen to $2.37 trillion, representing an 11.04% decrease in a single day. A significant contributor to this selloff was Bitcoin's "death cross," a chart pattern often interpreted by traders as a harbinger of further downtrends.

Bitcoin's Death Cross Signals Bearish Trend

Crypto analyst Ali shared a chart on X (formerly Twitter) illustrating Bitcoin's 50-day moving average crossing below its 200-day moving average—the death cross. This crossover, occurring around the $87,000 level, suggests a shift to bearish long-term momentum. The chart also shows BTC forming lower highs and lower lows since February. Following a brief recovery attempt in March, Bitcoin was rejected at the death cross level and subsequently experienced a sharp decline, falling below $75,000 after failing to hold the $80,000 support level. Support around $74,000 appears weak; if it breaks, $72,000 and $70,000 are likely the next key support levels. Analysts predict a potential revisit to these levels if bearish pressure persists.

Stock Market Instability Exacerbates Crypto Weakness

The U.S. stock market is also struggling, alongside China's stock market which recently suffered its worst single-day crash since 2008. Further concerns stem from macroeconomic policy uncertainty, with JP Morgan suggesting the Federal Reserve might consider cutting interest rates before its next scheduled meeting in May.

Analyst Michaël van de Poppe referred to today as "Black Monday" on X, citing widespread panic in both traditional and digital markets. He cautioned about increased volatility over the next one to two weeks, anticipating potential further lows before any potential rebound. President Trump's announcement of new tariffs on 185 countries has also contributed to global market jitters, prompting investors to sell off risk assets, including cryptocurrencies.

Oversold Conditions May Indicate a Potential Rebound

Bitcoin's daily Relative Strength Index (RSI) has fallen below 30, indicating oversold conditions. While this doesn't guarantee an immediate bounce, it often suggests that selling pressure is easing or nearing its end. The significant increase in trading volume during the price drop may indicate forced liquidations or capitulation. Historically, such volume surges during market crashes have sometimes marked short-term bottoms.

Currently, many traders are adopting a wait-and-see approach. Ethereum gas fees have dropped to their lowest levels since 2020, reflecting decreased network activity. This quiet period, often associated with high fear and trader hesitancy, has historically preceded market recoveries, although the timing remains uncertain.

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