Bitcoin dropped for the second day in a row on Thursday. It fell to a low of $28,300, a level not seen since October 10, as traders seemed to be moving away from risky investments.

Bitcoin, the largest cryptocurrency in the world by market capitalization, has been losing ground since its start of the year. TradingView data shows that bitcoin closed below the 20 day moving average (DMA), a sign of weakness. The last time Bitcoin traded below the 20 day moving average (DMA) was mid-March.

Bitcoin’s 20 Day Moving Average (TradingView).

Laurent Kssis is a crypto trading advisor at CEC Capital. He says that a 20-day moving-average can be a short-term perspective and allow investors to increase selling pressure.

Kssis said that the 20-day moving is more accurate and has a shorter lag (time to signal a possible reversal). It also tracks bitcoin closely. In our opinion, it indicates a market correction that could intensify.

The decline comes just a day following a large Bitcoin sell order placed on cryptocurrency exchange Binance, and an unexpectedly higher U.K. march inflation figure of over 10%.

This pullback is not positive. When looking at the bitcoin yearly chart it is clear that the industry has just recovered from the crypto mishaps in the last few years, said Sheraz Ahmed.

Ahmed added, “We may be seeing the beginnings of a long-overdue but healthy correction that should encourage more accumulation.”

The traditional markets were impacted by the decline of Tesla (TSLA) stocks, which fell 8.5% in one day following the earnings report published Wednesday. The net income was down by more than 20 percent compared to last year. Dow Jones Industrial Average, S&P 500 and Nasdaq are all down.

Craig Erlam is an analyst with the foreign exchange trading firm Oanda. He said that the recovery of bitcoin may be on its last legs, despite the rally it has seen since the beginning of the year.

Learn more about the view of a technical analyst on crypto

UPDATE (20 April 2023, 16:00 UTC). Updates stock exchanges movement.

Aoyon A. Ashraf is the editor.