The cryptocurrency market has faced notable losses today, with the total market capitalization plunging by $57 billion to $2.55 trillion. Bitcoin (BTC) led the decline, dropping to a critical support level of $76,600, testing lower levels within a broadening descending wedge pattern. The market continues to face bearish pressure, and it remains to be seen if the market can find a foundation for recovery.
Key Market Drivers
Several factors are contributing to the current downturn in the crypto space. In the news today, former U.S. President Donald Trump is set to sign an executive order aimed at reversing the crypto debanking regulations set by the Biden administration. This move could potentially provide relief to crypto businesses that have faced challenges accessing banking services.
Additionally, the U.S. Securities and Exchange Commission (SEC) has decided to withdraw a proposal that sought to expand its control over crypto exchanges. The proposal, introduced under former SEC Chair Gary Gensler, sought to redefine crypto exchanges, which may have added to investor uncertainty.
Bitcoin’s Struggle with Resistance
Bitcoin’s price has continued to test lower levels, hovering at $76,600, marking a four-month low. The crypto is still confined within a broadening descending wedge pattern, and its recovery hinges on breaking the crucial $80,000 resistance level. A decisive movement above $80,000 could trigger upward momentum, potentially reversing the current downtrend. However, if Bitcoin fails to hold above the $76,741 support level, further losses could follow, deepening the ongoing bearish trend.
Artificial Superintelligence Alliance (FET) Sees a Major Drop
Artificial Superintelligence Alliance (FET) also took a significant hit, losing 15% over the past 24 hours, now trading at $0.450. FET’s price broke below the critical $0.458 support level, leaving the altcoin vulnerable to further declines. If the bearish trend persists, FET may test the $0.400 support level, extending its downward movement. On the flip side, reclaiming $0.458 could signal a reversal, setting the stage for a potential rally.
Outlook
The crypto market remains under pressure, and its short-term outlook largely depends on Bitcoin’s ability to maintain support at $76,600 and overcome key resistance levels. While the potential for a market recovery exists, it will require a shift in sentiment and positive market developments. Investors will be closely monitoring the $2.50 trillion support level for the total market cap and Bitcoin’s price action to gauge the next move.
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