Bitcoin Retests $60K As Broader Crypto Market Turns Bearish

Bitcoin turned bearish Tuesday, shedding more than $4,500 in value in just a few hours. The slide brought BTC back to the $60,000 price levels, breaching the support at $64,000. And prices are dropping across the board as nearly every major altcoin has turned bearish.

Analyst and YouTuber Lark Davis called the price movement just a normal correction in a Bitcoin bull run, and advised his vieweres not to panic. He pointed to earlier instances of Bitcoin's price fall in bull markets. Davis said BTC's all-time high at $68,789 is not the peak of this bull run, and said the average price fall in Bitcoin's bull run is 20% and represents buying opportunities.

Data from CoinmarketCap showed a 68.02% surge in trading volume in Bitcoin, alongside by a 7.14% drop in the token's market capitalization. Bitcoin's current capitalization is at $1.14 trillion, and the dominance of the world's biggest cryptocurrency fell marginally to 41.3%.

Tuesday's Bitcoin crash follows President Joe Biden's signing of the Infrastructure Bill, which will increase regulatory pressure on the crypto market. The Bill seeks to enhance the legal restrictions on the crypto market and digital asset service providers by defining the term "broker." It also requires the crypto exchanges to increase oversight into the transactions by collecting the Social Security and other details of the people involved in the transactions.

The crash lighted up chatter on Twitter. An analyst commented that "blockchain data suggests today's price crash is partly fuelled by long-term holders taking some profits, which typically happens after bitcoin hits a new all-time high."

The stock market also took a hit from the bears. "Crypto is once more trying to decide between pullback or full crash, and stock indices are not yet at key levels again," analyst Patrick Seeking commented in a tweet.