As the crypto market appeared to stabilize, a bearish movement disrupted the upward momentum. Explore the drivers behind this drop and uncover the next steps for investors. Let's delve into analyzing the current situation.
Despite encouraging announcements such as Prenetics and Semler Scientific entering the Bitcoin market, the global geopolitical context remains the main obstacle to the recovery of the crypto market. The conflict between Israel and Iran is exerting significant downward pressure, weakening the upward trend.
While the total market capitalization of the crypto market remains around $3.21 trillion, volatility has decreased in recent days, indicating an ongoing consolidation. However, a test of the support at $3.16 trillion could signal further weakness in the short term.
Regarding Bitcoin, the price is just below the key level of $105,000. This psychological level is crucial to maintaining the bullish momentum. If investors manage to turn it into support, a potential rise to $108,000 would then be conceivable.
However, the slight bearish signals from the RSI suggest that BTC could lose ground and test supports at $102,734, or even $101,530. Such a decline would sow concerns among investors and could further weaken market sentiment.
On the memecoin side, SPX has experienced a new notable drop of 11.6% in the last 24 hours. Despite holding above the support at $1.25, a break below this level could pave the way for a drastic fall to $1.14. Such a scenario could trigger panic selling and accentuate the downward pressure.
However, if SPX manages to bounce off this support, a return to resistance at $1.42 and then $1.55 would be conceivable. This scenario would invalidate the current bearish trend and restore hope among investors in the memecoin segment.
In conclusion, the crypto market remains fragile despite some positive developments. The geopolitical context and investor sensitivity remain the main drivers of the current volatility. For savvy investors, vigilant monitoring of key support and resistance levels will be crucial to navigate this uncertain period.
Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
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