With the crypto market facing minor losses, Bitcoin struggles below the key resistance of $105,000, as the memecoin Dogwifhat nears a critical support level. What are the prospects for investors amidst these movements?
The crypto market has experienced a $10 billion decrease today, settling at $3.28 trillion. Although modest, this decline in Bitcoin emphasizes the need for a stronger recovery across the entire market. For the bullish momentum to resume, this $3.28 trillion level must turn into a solid support.
If this support is successfully defended, the TOTAL crypto market index could then target the next resistance at $3.40 trillion. However, a deterioration in general financial conditions could exert additional pressure on the market. Failure to maintain the $3.28 trillion threshold could lead to a drop towards $3.16 trillion, invalidating the bullish outlook and hinting at prolonged consolidation or even a deeper correction.
Meanwhile, currently trading at $103,988, the price of Bitcoin shows a slight increase compared to the previous day. However, the leading cryptocurrency remains trapped below the major resistance level of $105,000. This consolidation between $105,000 and $102,734 suggests that the market is awaiting clearer signals before committing to a direction.
If the downward trend intensifies, Bitcoin could potentially fall towards $100,000. This scenario seems more plausible than a bullish surge as impatient investors may decide to sell, exerting downward pressure. Such a decline to $100,000 could trigger a new rally, involving a “strong hands to weak hands” shift and smart money accumulation.
A break of support would lead to a sell-off down to $97,000. Therefore, closely monitoring what BTC does around the $100,000 mark is crucial.
The tightening of the Bollinger FBB indicates a movement of Bitcoin in the next few hours. With targets at $99,800 for the downside and $106,000 for the upside.
Displaying a 10% decrease, the memecoin Dogwifhat (WIF) is the weakest altcoin of the day. Despite this decline, the token manages to hold above the tecnical support of $1. This stability could provide hope for a price recovery if market conditions improve.
Currently trading at $1.016, WIF, however, remains below the $1.044 support. In case of further losses, the altcoin could drop towards the $0.859 support or even down to $0.70, the 4H FBB midline. This potential decline would challenge the bullish outlook, especially if market conditions do not improve to provide the necessary support.
In the short term, if WIF gains momentum, it faces strong resistance at $1.22 if it aims to set a new high. The next target could be around $1.43.
Despite a moderate decline, the crypto market remains in a phase of consolidation, awaiting clearer signals before committing to a new direction. Investors will need to pay attention to critical support levels, such as the $3.28 trillion for the overall market or $105,000 for Bitcoin, to seize upcoming opportunities.
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.
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