The crypto market just wiped out $109 billion in 24 hours, breaking a strong upward trend seen over the past few weeks. Bitcoin fell below $122,000, with altcoins facing significant selling pressure. Is this merely a consolidation phase or the start of a trend reversal?
BTC has recorded its first red candle of the month, ending a streak of consecutive new ATHs. The price of the king crypto slid to $121,765, losing the key psychological and technical level of $122,000. This breakdown exposes Bitcoin to downside risk toward the $120,000 zone, the next major support.
Trading volumes have increased, indicating active profit-taking. If BTC stabilizes above $121,000, reclaiming $122,000 could transform this level into new support and pave the way for a bounce toward the ATH of $126,199. Conversely, a close below $120,000 could trigger a liquidation cascade toward $115,000.
Plasma (XPL) drops 14%, falling from $1.00 to $0.89. The next major support is at $0.81, with a secondary zone at $0.71. The RSI in oversold territory and the bearish MACD on the 4H timeframe confirm selling pressure. A bounce toward $0.95 would be an initial recovery signal, potentially opening the path to $1.08 and validating a medium-term bullish structure.
Despite $109 billion evaporating, the total crypto market capitalization remains above $4.09 trillion. Long-term hodlers aren’t capitulating, unlike leveraged traders who have fueled recent volatility.
Addresses holding BTC for more than six months are maintaining their positions, showing solid conviction. Institutional investors are adopting a wait-and-see strategy rather than massive liquidation.
If confidence returns after the US government shutdown resolution, a move back toward $4.20 trillion seems possible. Catalysts include: ETF approvals and regulatory clarification for Web3. The current consolidation might offer interesting entry points for accumulation before the next bullish leg.
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