The crypto market just wiped out $92 billion in 24 hours. Bitcoin drops below the $100,000 psychological mark as the total market capitalization slides towards critical support levels. Investors are now eyeing the $3.26 trillion mark, the last line of defense before a deeper plunge.
The total market capitalization of crypto now stands at $3.29 trillion, just below the technical support level at $3.31 trillion. This brutal drop reflects an intensification of bearish sentiment and massive outflows from institutional investors. The negative momentum particularly weighs on major assets, creating increased volatility across all market segments.
Liquidity indicators show a progressive drying up of order books, reducing the market’s capacity to absorb selling waves. This technical situation considerably limits the potential for short-term recovery. If the level of $3.26 trillion gives way, analysts anticipate an acceleration of selling pressure toward $3.21 trillion, a scenario that would extend the current correction phase.
However, a successful defense of the $3.26 trillion zone could act as a catalyst for a technical rebound. A return above $3.31 trillion would pave the way toward the resistance at $3.42 trillion, gradually restoring investor confidence. Market conditions remain fragile nonetheless, with RSI in negative territory across most timeframes.
Bitcoin is currently trading around $97,004, marking its first incursion below $100,000 since last June. This major support break validates the bearish trend observed over the past three weeks and signals a significant weakening of bullish interest.
As a concerning sign, Bitcoin has suffered its biggest institutional selling day since its launch.
Bitcoin therefore finds itself at a critical threshold. On the historical trendline and on a major POC at $96K. If BTC loses this level, consolidation between $91K and $96K before a deeper fall will be the most likely scenario.
The Parabolic SAR switches to bearish configuration on the daily chart, confirming the market regime change. Institutional demand zones located between $95,000 and $97,000 could therefore offer temporary support. To invalidate the bearish scenario, Bitcoin would need to firmly reconquer the $100,000 mark and then target $105,000, which would require a significant turnaround in market sentiment.
Contrary to previous correction phases, many altcoins are maintaining their recent gains on daily charts. This relative resilience suggests market maturation and increased diversification of investor portfolios. MYX Finance illustrates this dynamic: despite an 11% drop to $2.28, the token maintains its position above the key support of $2.24.
Technical analysis of MYX reveals a Parabolic SAR in bullish configuration, indicating a potential divergence with the market’s general trend. If buyers effectively defend the $2.24 level, a move back toward $2.64 becomes feasible in the medium term. This perspective could strengthen the attractiveness of quality altcoins among investors seeking to diversify their positions during Bitcoin’s correction.
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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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