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Why is the cryptocurrency market down today?
Total Market Capitalization (TOTAL) is attempting to secure support of the $2.3 trillion mark. At the same time, Bitcoin (BTC) price is also fighting bearish signals to avoid a drop below $60,000.
Amid this downtrend is Bittensor (TAO), which lost the most last week, falling to a three-month low as a result.
In today’s news:-
- Bitcoin staking platform BounceBit will launch its mainnet today. Along with this, the token airdrop and trading on Binance will take place.
- China’s CBDC, the digital yuan, is eyeing sales from its users. Participants in the state-backed digital asset program show concerns about owning the digital currency.
TOTAL could see some positive side
The total market cap is currently in a symmetrical triangle, testing the lower bound as support at $2.17 trillion. He was attempted three times to cross the upper limit, but failed. This shows that a breakout would require significant bullishness from investors.
If this bullish trend is not secured, a fall to $2.11 trillion will likely mark a two-week low. Loss of this support would result in a sharp drop to $2 trillion, marking a two-month low.
To know more: Why are Hong Kong Spot Cryptocurrency ETFs Important?
Analysis of the total market capitalization of cryptocurrencies. Source: TradingView
On the other hand, if the downtrend fades and a breakout occurs, the likely upside could push TOTAL to breach the $2.3 trillion multi-week resistance.
The price of Bitcoin is still safe
Bitcoin price is around $61,000, which has been a key support level for many days. Despite the slight decline observed in the last 24 hours, BTC still has a chance of recovery, provided the crypto asset breaks out of the downtrend and secures $63,700 as support.
This would result in a potential uptrend, which is crucial for investors to recover the losses they witnessed during the decline over the past two months.
To know more: Bitcoin Halving History: Everything You Need to Know
However, the loss of this support would cause a collapse to $59,119, invalidating any hope of recovery and sending BTC to $58,000.
Bittensor correction continues
Over the past week, TAO price has seen a 22% drop, bringing the altcoin to $352. The $350 acts as a crucial psychological support level, and a fall below that level would send the TAO to $304, extending the correction.
As it stands, the altcoin is at a three-month low and declining volume supports the bearish thesis.
To know more: Cryptocurrency Coins and Tokens: What’s the Difference?
However, if the shift in signals from the broader market results in a recovery rally, TAO price could reclaim $377 as support. This would result in a rally above $400, allowing for a recovery of recent losses.
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