Why Is the Crypto Market Stagnant Today ? Key Holding Factors
With the recent decline in major cryptocurrencies, investors are growing concerned about the market's future. What is causing this downward trend, and what are the upcoming prospects?
Why is the Crypto Market Falling Today ?
The total capitalization of crypto market has indeed increased by $5 billion to reach $3.28 trillion, but it struggles to break the $3.31 trillion resistance. The Bitcoin, on the other hand, remains stuck below the $106,000 mark, finding it challenging to surpass this key resistance.
This market caution is explained mainly by neutral macroeconomic conditions, without a real bullish catalyst. Although the recent volatility is moderate, investors remain cautious, fearing a continued short-term decline.
Legitimate Concerns of Investors ?
The drop of the memecoin FARTCOIN, down by 7% in the last 24 hours, illustrates the challenges facing the crypto market as a whole. Currently trading just above $1, the “shitcoin” struggles to maintain its psychological support.
Technical analysis indicates that FARTCOIN is experiencing capital outflows, a sign of investor confidence loss. This bearish trend could push it below the symbolic $1 threshold, with price targets at $0.91 to $0.80.
In the last 24 hours, massive short volumes have been placed at $104,000, pulling the price of Bitcoin like a magnet. Furthermore, the fact that the test of the $106,600 resistance has failed twice increases the fear of a deeper pullback.
Mixed Short-Term Outlook
Facing these various negative signals, investors have reasons to worry. Without a major bullish catalyst, it seems unlikely that the crypto market can recover in the short term. Bitcoin must break through the $106,000 resistance to initiate a new rally.
The key level to watch will be the top at $108,800. If this threshold is surpassed, Bitcoin will head towards new highs, beyond $116,000 in the coming weeks.
If conditions were to improve, a breakthrough beyond the $3.31 trillion total market capitalization could pave the way for a new uptrend, with the next target set at $3.43 trillion. Seasoned investors will thus have a keen interest in staying alert to the market’s developments.
In case of a retracement, the support at $102,000 will be crucial. A break below it would take Bitcoin towards $98,000-$96,000.
The rise in SOPR of the STH and the drop in BTC price indicate a bearish divergence suggesting a distribution. It is essential to remain cautious and monitor key levels in the next two days.
Indeed, the MVRV indicator of the STH shows a median support at $97,000 or a new peak at $128,000. Both could be reached in the coming weeks.
Charles Ledoux
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
This article is for informational purposes only and should not be considered as investment advice. Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
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