Bitcoin is barely holding $60,000 as the bears retest the March lows

Bitcoin (BTC) fell below $60,000 on April 17 as US markets began trading, marking a return to prices last seen in early March before the digital currency recovered to new highs.

The flagship crypto hit a low of $59,658 before recovering modestly to around $60,800 at the time of writing, based on CryptoSlate data.

Bitcoin continued to hold at the USD 60,500 support level after a slowdown in selling pressure, with bulls attempting a potential recovery above USD 61,000.

Market turbulence

The decline comes at a time of general market turbulence, with both Bitcoin and traditional stock markets showing signs of tension.

Bitcoin last fell to this level on March 5, just before rocketing to a record-breaking $73,780 on March 13. Since reaching that peak, BTC has experienced significant fluctuations – since early April it has been trading in a huge range between $59,000 and $72,500.

Experts attribute the continued market volatility to several macroeconomic issues, including persistent inflation in the United States. Likewise, major stock indexes such as the S&P 500, Dow Jones and Nasdaq are all expected to be down today, reflecting broader economic uncertainties.

Further reinforcing cautious sentiment in the market, Federal Reserve Chairman Jerome Powell indicated in a recent press conference that the central bank may further delay expected rate cuts.

Powell noted that recent data has not boosted confidence in the economy, suggesting the recovery is slower than expected.

Altcoins mirror Bitcoin

Ethereum (ETH) also saw a decline, briefly falling below $3,000 to a low of $2,914 before stabilizing around $2,970 at the time of writing.

Meanwhile, BNB fell to a low of $512 for the day, while Solana (SOL) reached $126.8 before both tokens recovered to around $525 and $130 at the time of writing.

The timing is critical as Bitcoin approaches its halving this weekend, which will reduce the block reward from 6.25 BTC to 3.125 BTC, potentially impacting Bitcoin’s value in the short term due to reduced supply pressure.

Investors are keeping a close eye on the impending halving, which will take place between late Friday and early Saturday, as the event has historically triggered significant price movements.

As the market braces for this pivotal event, ongoing geopolitical and economic factors continue to cast a broad shadow, suggesting that the crypto market’s infamous volatility is far from over.