Bitcoin (BTC) Crashes Over 6% to $58k Before Attempting Recovery

The majority of the losses were recorded in less than an hour after Bitcoin lost the key $61,000 support level.

Bitcoin (BTC) slid below $59,000 on Friday (Oct 21) after a brief rally stalled, while AI-focused cryptocurrencies led the broader market’s decline following a drop in Nvidia’s stock price.

The world’s biggest cryptocurrency fell as far as $58,866 after bulls failed to push past a key resistance level, largely erasing a 3.2% gain recorded over the past 24 hours. BTC was trading at $59,200 at the time of writing, having started the rally earlier this week at around $59,000.

Bitcoin’s pullback came as the broader market experienced a sell-off, with most cryptocurrencies suffering heavier losses than BTC, which was still up 0.6% over the past 24 hours. AI-focused cryptocurrencies led the market’s decline following a significant drop in Nvidia’s (NVDA) stock price, which fell 6.4% after the company reported its quarterly earnings.

Tokens like Render (RNDR), Artificial Superintelligence Alliance (FET), and Bittensor (TAO) all experienced losses ranging from 7% to 10%.

Among the top 10 cryptocurrencies, Solana (SOL) and XRP recorded the most significant losses for the day, largely echoing Bitcoin’s movements. Ethereum (ETH) fell to $2,503 before bulls attempted a recovery, while SOL fell to a low of $138.5.

BNB similarly fell to a low of $530, while Toncoin (TON) remained under pressure due to recent challenges involving network disruptions and the arrest of Telegram founder and CEO Pavel Durov.

The pullback highlighted continued challenges for Bitcoin bulls in pushing past key resistance levels, raising concerns about the broader market’s strength. The market’s trajectory has recorded lower highs and lower lows since March, indicating continued uncertainty and volatility.

The price action suggests that the crypto market may be heading for further consolidation. Bitcoin’s quick recovery from its early August plunge below $50,000 appears to be losing steam, with the flagship cryptocurrency remaining in a downtrend since its March all-time high of $73,000.

The broader U.S. stock market also mirrored the crypto market’s movements, with the tech-heavy Nasdaq reversing earlier gains to trade 0.3% lower shortly before the close of trading. The index was up more than 1.5% earlier in the day, reflecting similar investor uncertainty.

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