Why the Crypto Market Is Down Today

The Crypto Market Cap (TOTALCAP) and Bitcoin (BTC) are approaching their previous breakdown levels. BLUR trades in a corrective pattern.

In the news today:

TOTALCAP Retests Resistance

The cryptocurrency market cap has traded inside an ascending parallel channel since December 9, 2023. The increase led to a high of $1.81 trillion on January 11, 2024.

The price has fallen since and broke down from the channel on January 18, also falling below the $1.61 trillion support area, which is the 0.382 Fibonacci level.

On January 23, TOTALCAP decreased below the $1.52 trillion support area but bounced afterward and reclaimed the area.

Yesterday, TOTALCA returned to the $1.61 trillion resistance and the channel’s support trend line (red icon), where it was rejected.

If TOTALCAP falls, it can decrease by 14% to the closest support at $1.40 trillion.

Despite this bearish TOTALCAP prediction, reclaiming the support trend line can trigger a 12% increase to the channel’s resistance trend line at $1.80 trillion.

Bitcoin Reclaims Range

The Bitcoin price has traded inside an ascending parallel channel since December. However, it broke down from the channel on January 12, 2024. This is a sign that the upward movement has ended.

After a rejection from the channel’s support trend line on January 16 (red icon), BTC resumed its downward movement. The decrease accelerated on January 22, causing a breakdown from the $41,000 horizontal support area.

The BTC price fell to a low of $38,505 but bounced afterward and reclaimed the $41,000 horizontal area. It is approaching the channel’s support trend line, which coincides with the 0.618 Fib level at $45,000.

If it reclaims it, BTC can increase 15% to the channel’s resistance trend line at $49,000.

Conversely, if BTC gets rejected from the channel, it can fall 4% to the $41,000 horizontal area.

BLUR Deviates Above Resistance

The technical analysis of the daily time frame shows that the BLUR price broke out from the $0.65 horizontal resistance area on January 16. However, the price could not sustain its upward movement.

Rather, it fell below the area and validated it as resistance twice (red icons). This confirmed the deviation above the resistance area (red circle). It also trades in a corrective ascending parallel channel.

If a breakdown occurs, BLUR can fall 30% to the closest support at $0.43.

Despite this bearish BLUR price prediction, closing above the $0.65 area can cause a 28% increase to the next resistance at $0.80.

For BeInCrypto‘s latest crypto market analysis, click here.