Why Is the Crypto Market Down Today?
The total crypto market cap (TOTAL) and Bitcoin (BTC) both slipped below key support levels, creating the potential for further decline. That being said, THORChain (RUNE) noted a 16% correction in the span of 24 hours.
In the news today:
- A group of fintech and crypto firms, including Robinhood, Kraken, and Galaxy Digital, launched the Global Dollar Network with a US dollar-pegged stablecoin, USDG. Issued by Paxos in Singapore, this network aims to boost global stablecoin use and deliver shared economic benefits to its partners.
- On Monday, Mt. Gox transferred approximately 32,371 BTC (valued at $2.19 billion) to unidentified wallet addresses, blockchain analytics firm Arkham reported.
The total crypto market cap saw a decline of $33 billion on Monday, settling at $2.23 trillion. TOTAL is barely holding above the critical support level of $2.21 trillion, reflecting mounting pressure within the market.
This support has historically curbed further decline, suggesting a chance for TOTAL to bounce back toward $2.29 trillion. Investors view this as a potential turning point, with cautious optimism for a market recovery.
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Total Crypto Market Cap Analysis. Source: TradingView
However, if TOTAL dips below the support of $2.21 trillion, it would invalidate recovery prospects. This could potentially push the market cap down to $2.11 trillion, signaling deeper losses for the broader crypto market.
Bitcoin Continues DrawdownBitcoin’s price recently dropped below the $68,248 support level, attributed to Mt. Gox wallet transfers. Despite this slip, BTC might soon reclaim this support as investor sentiment remains cautiously optimistic.
Recovering $68,248 is essential for Bitcoin to aim for $71,367, the key barrier separating BTC from achieving a new all-time high. Reclaiming this level could reignite bullish momentum, drawing buyers back into the market.
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Bitcoin Price Analysis. Source: TradingView
The Relative Strength Index (RSI) currently shows that bearish momentum hasn’t fully strengthened. However, if bearish pressure intensifies, Bitcoin may see a further decline toward $65,292, signaling a more extended consolidation phase for the cryptocurrency.
RUNE Ruined by Bearish CuesRUNE continued its steep decline on Monday, dropping nearly 16% and slipping below the critical $4.50 support level. This loss reflects persistent bearish pressure and raises concerns for short-term stability.
The altcoin is now focused on reclaiming $4.50 as a support level, as this key point has been pivotal in its attempts to reach $5.37. A successful flip of this level would mark a potential reversal and could attract renewed buying interest.
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RUNE Price Analysis. Source: TradingViewEven if RUNE fails to breach $4.50, it may avoid a steep decline. The 23.6% Fibonacci Retracement line at $3.94 serves as strong support, providing a buffer against further losses and a potential point for recovery.
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