Why is the crypto market down today

The total crypto market cap (TOTALCAP) has increased since 21 November. The upward movement reached a high of $848 billion on 14 December. Initially, it seemed like the move resulted in a breakout above the $825 billion resistance area, which had acted as support in June/July before turning into resistance.

However, the crypto market cap was subsequently rejected (red icon) and has since fallen. The rejection validated the $825 billion area as resistance once again.

If the decline continues, the nearest support area will be $740 billion. If the cryptocurrency market cap price breaks above the $825B area or breaks below $740B, it will determine the future trend direction.

bitcoin broke out of the parallel channel

bitcoin worth Had traded inside an ascending parallel channel since 21st November. Such channels usually have corrective movements, which means that it would be expected to break out eventually.

After reaching a high of $18,387 on December 14, BTC price declined sharply and broke out of the channel two days later. Currently, it is barely above the 0.618 Fibonacci retracement support level at $18,580.

Due to the breakdown of the channel, it is most likely that a new downward movement has begun in bitcoin price, which will lead BTC price to a new yearly low.

In this case, the first support level formed by the 1.27% outer Fibonacci retracement level of the most recent rise would be at $14,700. Retesting the support line of the channel will invalidate this bearish BTC price prediction.

Mina at all time low

Meena worth had fallen below a descending support line since early June. While the support line gave several bounces, MINA price finally broke above it on 17 December. It reached a new all-time low of $0.461 on 19 December.

Therefore, the most likely price forecast is bearish, suggesting that the downward movement will continue. The next closest support area is at $0.41.

Retesting the support line and the $0.505 area would invalidate this bearish hypothesis and signal that the trend is bullish.

For the latest crypto market analysis from BeInCrypto, Click here.

disclaimer

BeInCrypto endeavors to provide accurate and up-to-date information, but shall not be responsible for any missing facts or incorrect information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so do your research and make your own financial decisions.

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