Crypto markets bleed as bitcoin hovers above liquidation zone

Bitcoin BTC$63,193.53 fell for a fourth straight day to around $63,100, its lowest since Feb. 6's $60,200, CoinDesk data show.

The latest move to the downside coincides with risk-off sentiment from investors across global markets. U.S. equities have lost ground this week, and the dollar index (DXY) rose by 0.5% since Asian hours on Monday.

BTC is down by 2.1% since midnight UTC and 4.7% over the past 24 hours. A break below $60,000 would trigger another round of liquidations and a possible leg down to as low as $52,500, which is a historical level of support dating back to 2021.

The altcoin market also appears battered and bruised on Tuesday. BCH$479.70 lost 11.5% of its value over the past 24 hours with a 3% drawdown since midnight UTC, while SUI, JUP, PUMP and WLFI all lost more than 2%.

Analysts are describing price action as a "slow bleed" typical of previous cryptocurrency bear markets, although it's worth noting that the average crypto relative strength index (RSI) indicator is flashing an "oversold" signal, meaning there is potential for a bounce in the low $60,000 region.

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