Cryptocurrency markets have encountered minor selling pressure, reflecting broader market trends and technical challenges for Bitcoin.
Overall Market State
As of May 6, the total cryptocurrency market capitalization decreased by 0.54%, falling below $3 trillion to $2.94 trillion.
Factors Driving the Decline
The decline in cryptocurrencies correlates with a drop in equity markets, including a loss of over 400 points in the Dow Jones. Renewed fears regarding Donald Trump’s tariffs also contributed to negative sentiment among traders, particularly after he announced new tariffs on pharmaceuticals.
Technical Pressures on Bitcoin
Bitcoin continues to face long-term dynamic resistance, limiting its potential growth. Its last significant breakout attempt occurred on April 23, creating expectations for potential further decline unless significant catalysts emerge.
Despite the overall downturn, Bitcoin shows relative resilience and maintains a dominance of 64.1%, although its price remains under pressure.
