Why Is the Crypto Market Down Today?
The Crypto Market Cap (TOTALCAP), Bitcoin (BTC) and Mantle (MNT) failed to sustain their upward movements, falling toward the end of last week.
In the news today:
TOTALCAP Does Not Close Above Support
The weekly time frame technical analysis shows that TOTALCAP had increased inside an ascending parallel channel since the start of 2023. The price broke out from the channel in December and then moved above the $1.61 trillion resistance area in January. The area is crucial since it is both a horizontal and Fib resistance area.
While TOTALCAP reached a high of $1.81 trillion last week, it created a very long upper wick and fell (green icon). Such wicks are considered signs of selling pressure.
So, whether the price closes above this area or resumes its rejection will determine the future trend.
A close above the area can trigger a 30% increase to the next resistance at $2.10 trillion. On the other hand, TOTALCAP can fall 17% to the channel’s midline at $1.40 trillion if it regresses inside the channel.
Bitcoin (BTC) Falls After ETF Approval
The Bitcoin price has also increased since the start of the year. The upward movement caused a breakout from resistance at $42,300, a horizontal and Fib retracement resistance level.
BTC reached a high of $49,050 last week, possibly fueled by the approval of the Bitcoin ETF. However, it created a very long upper wick and a bearish shooting star candlestick(red icon). It now trades inside the $42,300 support area again.
Whether it breaks down or bounces can determine the future BTC trend.
A breakdown can trigger a 28% BTC price drop to the closest support at $31,000, while a bounce can lead to a 20% increase to the next resistance at $50,500.
Read More: 9 Best Crypto Demo Accounts For Trading
MNT Falls Under Resistance Trend Line
The MNT price has fallen under a descending resistance trend line since January 11. The resistance trend line has been validated thrice (red icon), more recently on January 13.
After the rejection, MNT returned to the $0.70 horizontal support area. Whether it breaks down below it or breaks out from the resistance trend line can determine the future trend.
A breakdown can trigger an 18% drop to the closest support at $0.60, while a breakout can trigger a 10% increase to the next resistance at $0.80.
Read More: What is Mantle Network?
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Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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