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Why Is the Crypto Market Down Today?

Why Is the Crypto Market Down Today?

BeInCryptoBeInCrypto2023/12/11 09:24
By:Valdrin Tahiri&Ryan James

The Bitcoin (BTC) price and the Crypto Market Cap (TOTALCAP) fell sharply today after eight successive bullish weeks. Fantom ( FTM ) broke out from a descending resistance trend line.

In the news today:

  • Several U.S. Senators introduced the “Terrorism Financing Prevention Act,” targeting entities aiding foreign terrorist organizations.
  • Anatoly Legkodymov, the founder of crypto exchange Bitzlato, admitted guilt in operating “Safe Haven” for criminals.

Crypto Market Gets Rejected at Resistance

TOTALCAP has increased rapidly since October, creating eight successive bullish weekly candlesticks. The upward movement culminated with a new yearly high of $1.63 trillion last week.

The high was made very close to the $1.60 trillion confluence of resistance levels. The resistance is created by a horizontal resistance area and the 0.382 Fib retracement resistance level.

After the area rejected it (red icon), TOTALCAP is in the process of creating a bearish weekly candlestick for the first time since October.

Whether TOTALCAP closes above the $1.60 trillion resistance or resumes its descent will determine the future trend. A successful breakout can lead to a 20% increase to the next resistance at $1.87 trillion, while a 20% drop to the $1.25 support can occur if the downward movement continues.

Bitcoin Price Fails to Sustain Breakout

Similarly to TOTALCAP, the BTC price created eight successive bullish weekly candlesticks starting in October. The upward movement culminated with a new yearly high of $44,729.

The high was made slightly above the confluence of resistance levels at $42,450, created by the 0.5 Fib retracement resistance level and a horizontal resistance area. Despite the increase, BTC failed to sustain the upward movement this week and fell inside the area.

Why Is the Crypto Market Down Today? image 0 BTC/USD Weekly Chart. Source: TradingView

Whether BTC closes above or below this area can determine the future trend. If it closes above, a 15% increase to the next resistance at $48,800 will be the most likely scenario.

On the other hand, a close below the $42,450 level can trigger a 15% drop to the closest support at $36,000.

Fantom (FTM) Price Breaks Out From Trend Line

The Fantom price had fallen under a descending resistance trend line since the start of the year. The decrease culminated with a low of $0.17 in October.

The price began to move upward afterward, breaking out from the trend line last week.

Despite the increase, the FTM price did not close above the $0.37 horizontal resistance area. Whether it does or gets rejected can determine the future trend’s direction.

A successful breakout could lead to a 55% increase to the next resistance at $0.57.

On the other hand, failure to do so can lead to a retest of the trend line at $0.31. This would be a decrease of 15%.
 
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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