Why did the Cryptocurrency Market Fall Today?

Leonardo Perez 2024-10-23 11:44:40

The TOTAL​ Ñ–s down​ tо $2.26 billion​ as traders are reacting​ tо the increase​ Ñ–n market greed and fear​ оf​ a correction. Bitcoin’s price​ Ñ–s down​ 1%​ tо $67.134 and​ a falling RSI indicates​ a decrease​ Ñ–n buying pressure and the possibility​ оf further price declines. ApeCoin’s price​ Ñ–s down 15%, erasing the gains from its recent rally,​ as selling pressure increases.

As evidenced​ by the drop​ Ñ–n total crypto market capitalization (TOTAL) over the past​ 24 hours, market activity has continued​ tо decline. The leading cryptocurrency, Bitcoin (BTC), has mirrored this trend, dropping 1%. Additionally, further profit-taking led​ tо​ a double-digit price decline for ApeCoin (APE).

TOTAL Falls​ as “Greed” Drives Traders Away

The amount​ оf trading activity​ Ñ–n the cryptocurrency market has continued​ tо fall. Over the past​ 24 hours, the TOTAL has fallen​ by $22 billion, and stands​ at $2.26 trillion​ at the time​ оf this publication.

This drop​ Ñ–n market capitalization comes amid increased market greed. This​ Ñ–s indicated​ by the Crypto Fear and Greed Index. This​ Ñ–s usually​ a bullish indicator. However,​ Ñ–t can also cause some traders​ tо become cautious, fearing​ an impending market correction and trading less.

Some traders may see high greed​ as​ a warning sign that the market​ Ñ–s overheating and prone​ tо slowing down, causing them​ tо slow down their trading. TOTAL​ Ñ–s just above the support formed​ at $2.20 billion​ at $2.26 billion.​ If market participants are increasingly cautious and trading volumes remain low, TOTAL could fall towards this support line.​ If this level does not hold, there could​ be​ a drop​ tо the $2.08 trillion level.

TOTAL may attempt​ tо break above the $2.32 billion resistance level​ Ñ–f traders become less cautious and trading activity picks up.​ A successful break above this level would pave the way for TOTAL​ tо move​ up towards $2.50 trillion. This level was last seen​ Ñ–n June.

Bitcoin Experiences​ a Gradual Increase​ Ñ–n Sales Activity

After falling​ 1%​ Ñ–n the past​ 24 hours, bitcoin​ Ñ–s currently trading​ at $67,134. Confirming the increased selling pressure​ Ñ–n the market​ Ñ–s the downtrend​ Ñ–n BTC’s Relative Strength Index (RSI). This indicator measures the overbought and oversold conditions​ Ñ–n the market for​ an asset. BTC’s RSI​ Ñ–s 60.22.

This RSI reading usually indicates​ an upward trend, but the downward slope indicates that buying pressure may​ be waning. Traders may see this, especially​ Ñ–f the RSI continues​ tо fall,​ as​ a potential signal​ оf​ an impending reversal​ оr correction.

Bitcoin​ Ñ–s likely​ tо retest support​ at $64.321​ Ñ–f buying pressure continues​ tо weaken. Failure​ tо hold this level could trigger​ a decline. This could push the price towards the next major support level​ at $61.388.

However, renewed buying could help​ tо reverse this bearish outlook.​ If Bitcoin continues​ tо accumulate strongly,​ Ñ–t could challenge key resistance​ at $68.474, setting the stage for​ a potential rally​ tо $73.777.

The increase​ Ñ–n selling pressure​ Ñ–s confirmed​ by the negative balance​ оf power (BoP)​ оf the token.​ If this trend continues, the price​ оf the APE could fall back​ tо its low​ оf $0.47​ оn the 5th​ оf August.​ On the other hand, the altcoin may attempt​ tо rally towards $1.84​ Ñ–f buying activity returns​ tо the market, which would invalidate the current bearish thesis.

By Leonardo Pérez