Bitcoin and the broader crypto market took a hit on Tuesday, sparking fresh concerns among investors about whether the months-long bull run might be losing steam.<\/p>\n\n\n\n
BTC dropped sharply from Monday\u2019s high of $123,200<\/strong> to $116,600<\/strong>, marking a 3.84%<\/strong> decline. This drop also pulled the total crypto market cap down by more than 3.7%<\/strong>, now sitting at around $3.65 trillion<\/strong>.<\/p>\n\n\n\n Among the biggest losers were some of the more speculative altcoins Virtuals Protocol (VIRTUAL)<\/strong> tanked 9.42%<\/strong>, SPX6900 (SPX)<\/strong> fell 8.31%<\/strong>, and Fartcoin (FARTCOIN)<\/strong> dropped 7.36%<\/strong>. The sharp declines across the board are largely attributed to profit-taking after a strong run.<\/p>\n\n\n\n Honestly, pullbacks like this are normal even healthy after a big rally. Bitcoin, for example, hit an all-time high of $109,389<\/strong> in January before dropping to $74,450<\/strong> in April. These kinds of corrections help reset overheated markets and clear out short-term speculation.<\/p>\n\n\n\n But this week\u2019s retreat isn\u2019t just about profit-taking. It also comes as the crypto world watches \u201cCrypto Week\u201d<\/strong> unfold in Washington, D.C.<\/p>\n\n\n\n Republicans are reviewing three major crypto-related bills:<\/p>\n\n\n\n Although there\u2019s been some bipartisan support especially for the GENIUS Act many market watchers remain skeptical about whether any of these proposals will make it through Congress. The memory of Trump\u2019s much-hyped but ultimately fruitless \u201cInfrastructure Week\u201d still lingers.<\/p>\n\n\n\n There\u2019s also a classic case of \u201cbuy the rumor, sell the news\u201d<\/strong> playing out. Crypto prices surged in anticipation of regulatory clarity, but now that the event is actually here, traders are cashing out, contributing to the slide.<\/p>\n\n\n\n Looking at the charts, the signals are actually pretty textbook.<\/p>\n\n\n\n Bitcoin formed a shooting star<\/strong> candlestick pattern on Monday a well-known bearish reversal<\/strong> indicator. On top of that, BTC had been trading well above its key moving averages:<\/p>\n\n\n\n With the price peaking over $123,000<\/strong>, it was only a matter of time before some mean reversion<\/strong> kicked in a natural tendency for prices to drift back toward their historical averages.<\/p>\n\n\n\n Another factor: Bitcoin appears to be undergoing a break-and-retest<\/strong> move, where the price pulls back to test a previously broken resistance now acting as support at around $110,000<\/strong>. If this support holds, it could set the stage for the next leg up.<\/p>\n\n\n\n Probably not.<\/p>\n\n\n\n What we\u2019re seeing now is more like a healthy breather<\/strong> than a full-blown reversal. If Bitcoin finds footing near $110,000<\/strong>, it could attract fresh buying interest and ignite a new rally one that could pull altcoins along for the ride.<\/p>\n\n\n\n In short, while short-term jitters and political uncertainty are shaking things up, the long-term bullish trend remains intact for now.<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" Bitcoin and the broader crypto market took a hit on Tuesday, sparking fresh concerns among investors about whether the months-long bull run might be losing steam. BTC dropped sharply from Monday\u2019s high of $123,200 to $116,600, marking a 3.84% decline. This drop also pulled the total crypto market cap down by more than 3.7%, now…<\/p>\n","protected":false},"author":3,"featured_media":10081,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63,70],"tags":[284,69,469],"class_list":["post-10080","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-finance","tag-altcoin","tag-bitcoin","tag-crypto-market"],"yoast_head":"\nWhy Is Crypto Pulling Back?<\/h3>\n\n\n\n
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Technicals Point to a Healthy Pullback<\/h3>\n\n\n\n
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So, Is the Bull Run Over?<\/h3>\n\n\n\n