- The crypto market is going down today, with Bitcoin and most altcoins being in the red.
- The drop coincided with the ongoing stock market dive.
- Bitcoin price technicals suggest that the coin may drop to $50,000.
The crypto market is down today, March 27, mirroring global stock markets. Bitcoin dropped to $66,000 from this month’s high of $76,000. Sadly, fundamentals and technicals suggest the situation will worsen in the near term.
Crypto Going Down as Geopolitical Risks Rise
Bitcoin and most altcoins continued falling today. Some of the top laggards included tokens such as Siren, ETHFI, Worldcoin, Morpho, Kite, and Pi Network. Siren dropped by 60% in the last 24 hours, while these other tokens dropped by over 6%.
American stocks dropped sharply, with the Dow Jones Industrial Average and the S&P 500 falling by over 1%. In Europe, top indices like the German DAX, French CAC 40, and British FTSE 100 are falling by over 1%.
The ongoing crypto market crash is occurring amid investor anticipation that the Iran war will last longer than expected. For one, the United States is now sending thousands of troops to the Middle East, likely to launch a ground attack.
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As a result, data show that crude oil and natural gas prices continued soaring. Brent crude oil jumped to $104, erasing some of the losses made earlier this week. This trend may persist as global energy shortages persist.
Meanwhile, the bond market continues its sell-off, with the 10-year and 30-year yields rising to their highest levels in months. The ten-year jumped to 4.45%, while the 30-year rose to 4.95%. As a result, there are concerns that the Federal Reserve will hike interest rates this year despite the stagflation concerns.
The crypto market crash is unfolding as traders monitor the ongoing debate over the CLARITY Act. Coinbase has maintained that it will oppose the bill if it lacks a stablecoin yield solution.
Technical Analysis Suggests that Worse is Yet to Come
In an X post today, popular analyst Peter Brandt warned that Bitcoin’s price may continue to fall in the near term, potentially to $50,000 or lower. He pointed to a chart similar to what we covered in our Bitcoin forecast.
The three-day chart below shows that the BTC price has continued to fall over the past few months. It has formed a bearish flag pattern and has already moved below the lower side of the channel.
Notably, it formed another bearish flag pattern between October last year and January this year. It remains below both the Supertrend and Ichimoku cloud indicators. Also, it remains below the key support level at $74,725, its lowest level in April last year.
Therefore, Bitcoin price may crash hard in the coming weeks, potentially to the key support level at $50,000. Such a move will lead to a steeper crypto market crash this year.
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