Why are cryptocurrencies losing momentum right now

The cryptocurrency market is undergoing a correction phase after weeks of strong gains. Currently, the decline has affected almost all major digital currencies, creating uncertainty among investors. Bitcoin has experienced a 3.82% loss in the last 24 hours, dropping to $74,710, while Ethereum has seen a similar contraction of 3.77%, settling at $2,190. This downward movement is not isolated but part of a broader dynamic involving the entire crypto ecosystem.

Macroeconomic Pressures and Sentiment Shift

On the macroeconomic front, recent developments have played a significant role in influencing the market. An American court blocked the tariffs proposed by President Trump, creating volatility even in policy expectations. At the same time, Treasury Secretary Bessent announced that trade negotiations with China remain stalled, fueling uncertainty in global markets. These factors have contributed to changing overall sentiment, prompting traders to reconsider their positions.

The Fear and Greed Index Indicates a Consolidation Phase

The cryptocurrency fear and greed index remains at 61, indicating continued greed among market participants. However, historically, when the market stays at these levels for extended periods after long rallies, a consolidation phase naturally emerges. Today’s decline fits precisely into this cyclical pattern: after a sustained bullish push, markets tend to partially realize accumulated gains. This dynamic does not necessarily signal a reversal but rather a natural pause within a positive trend.

Bitcoin and Ethereum: Technical Indicators Show Signs of Slowdown

Bitcoin reached a nine-day low of $72,930, indicating short-term weakness. Analysts have observed that the leading cryptocurrency is showing concerning technical signals: the Super Trend, while still green, is beginning to lose upward momentum, often a precursor to more significant movements. Long position liquidations remain active and will continue to pressure prices until these indicators stabilize.

Ethereum faced a new rejection at the main resistance level, with the price dropping 3.77% in the last 24 hours. What worries analysts most is the MACD on the three-day timeframe, which is showing early signs of weakening. If this indicator registers a bearish crossover in the coming weeks, Ethereum could enter an even weaker phase. The resistance zone remains a difficult obstacle to overcome in the short term.

Altcoins Face Even Greater Pressures

Altcoins are suffering even more than the two market leaders. Solana has lost 7.79% in the last 24 hours, experiencing one of the most significant declines among major projects. Cardano has contracted by 2.21%, while Dogecoin has fallen 1.53%. BNB, the token of the largest DeFi ecosystem, has dropped 3.99%, XRP 2.46%, and Sui 3.24%. This broader movement among altcoins suggests that the market is selectively favoring projects with stronger fundamentals.

Stablecoins like USDT and USDC have maintained their stability, as expected from their nature, serving as a temporary refuge for traders who prefer to wait for signs of recovery before re-entering.