Crypto investors are on high alert today as the market experiences a widespread downturn. What are the key factors driving this bearish trend ? Expert analysis sheds light on the situation.
The crypto market is currently going through a difficult period, with a drop in total market capitalization of $83 billion. This decline is primarily explained by the announcement last week of new tariffs by the former US president. A decision that fuels economic uncertainty and feeds investors’ risk aversion.
Indeed, Bitcoin (BTC) and the TOTAL index are struggling to break through key resistance levels, signaling a cautious market sentiment. While BTC oscillates below $115,000, the TOTAL index is struggling to exceed $3.73 trillion. If the support at $3.61 trillion isn’t maintained, a further drop toward $3.49 trillion becomes possible.
For Bitcoin, breaking through $115,600 would reduce the chances of another fall and could propel the BTC price to more than $120,000 soon. Resistance at $115,900 could slow it down today with an important support (POC) at $114,400 in case of retracement after the rise.
Among the crypto sectors most affected by this decline, we find Fartcoin (FARTCOIN), which has fallen by nearly 11% in 24 hours. Currently trading at $0.93, this memecoin’s price is under heavy pressure.
For Fartcoin, the challenge will be to stabilize above the support at $0.92. A successful breakthrough of this level could pave the way for a rebound beyond $1.02, bringing the token back above the symbolic one-dollar threshold. However, if selling continues, Fartcoin’s price could plummet to $0.80, invalidating any short-term bullish outlook.
In the face of these turbulences, caution remains essential for crypto investors. Although the market has shown resilience in the past, current economic uncertainties weigh on the overall sentiment. It will be crucial to closely monitor the evolution of key support levels in the coming days to anticipate the market’s next movements.
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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