The total cryptocurrency market capitalization (TOTAL) and Bitcoin (BTC) have seen a slight decline in the last 24 hours, pausing after a strong uptrend. Failure to break a significant psychological resistance indicates a temporary shift towards a risk-off approach by investors.
The crypto market has attempted, unsuccessfully, to break through the glass ceiling of $3 trillion in global market capitalization. This highly symbolic level acts as a fierce technical and psychological resistance. After grazing this critical threshold, the market is logically entering a phase of technical correction.
It is common to observe this type of movement after a sustained rally. But according to trader Killa, this new rejection at $90,000 for Bitcoin is only temporary and a breakout is becoming increasingly likely:
“If BTC can hold above the $86,000-$87,000 range, a move back above $90,000 becomes very likely, possibly higher. It seems market makers and larger players are conditioning participants to get comfortable shorting above $90,000. They are building liquidity to be taken. In due time.”
As usual, Bitcoin (BTC) dictates the trend. Its inability to maintain bullish momentum has sent a signal of weakness to the rest of the market. When the leader falters, liquidity tends to withdraw from the most volatile assets first. This is what we are observing today with a general sentiment of risk aversion.
Altcoins, often more sensitive to BTC fluctuations, are bearing the full brunt of this cooling. Among notable movements, the cryptocurrencies Audiera (BEAT) and NIGHT recorded the sharpest decline of the day, plunging by 15%. This brutal drop illustrates the inherent volatility of lower market cap assets during turbulent phases. As investors seek to secure their positions in stablecoins or Bitcoin (flight to quality), altcoins struggle to maintain their recent price levels.
For now, on-chain indicators are not yet signaling a major trend reversal, but this week could be explosive. For the bullish structure to remain intact, Bitcoin must absolutely hold its current support zones.
If buyers (bulls) manage to absorb this selling pressure, a new breakout attempt above $90k could push BTC toward the major resistance around $92,500. The support at $86,300 is crucial and should be monitored over the next 24 hours.
In summary, this drop could be manipulation by market makers to force people to short at the $90k resistance, creating a liquidity zone to be captured later.
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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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