The total cryptocurrency market capitalization (TOTALCAP) is cooling off from the recent rally that also took Bitcoin (BTC) above $65,000.
In today's news:
The SEC has obtained a judgment in its favor against Rivetz Corp and its CEO, Steven Sprague, for selling $18 million worth of unregistered securities through the Ethereum-based RvT token. A Massachusetts court ruled in favor of the SEC on Sept. 30.
Binance has confirmed that it is adhering to international sanctions by denying access to sanctioned Russian individuals and entities. The exchange stated that it strictly follows global sanctions rules, ensuring compliance with the restrictions.
Cryptocurrency market in decline
The total cryptocurrency market cap currently stands at $2.20 trillion after losing over $72 billion in 24 hours. This significant drop caused TOTALCAP to break through the crucial support level of $2.25 trillion, leading to a wave of uncertainty among investors.
In this regard, the next major support level is at $2.11 trillion. If the market drops further to this point, it could indicate that investors are engaging in profit-taking as the market cools down. A decline into this support level could signal a potential period of consolidation.
TOTALCAP Chart on TradingView
However, if investors maintain their bullish stance, there is a possibility that TOTALCAP could reclaim the $2.25 trillion support level. If this occurs, it could pave the way for a recovery and potentially trigger a market rally.
Bitcoin faces bearish wave
Bitcoin is currently trading at $63,697, having lost the crucial support level of $65,292. The cryptocurrency is now attempting to reclaim this key level as investors watch closely. This sudden decline has raised concerns, but the asset still has a chance to bounce back if it can regain the lost support.
However, short-term sell-off risk persists. If investors choose to lock in their gains amid market uncertainty, Bitcoin could fall further to $61,725. Such a scenario would likely increase bearish sentiment, leading to more selling pressure on the asset.
Bitcoin (BTC) Chart on TradingView
Reclaiming the $65,292 level is essential for the price to continue its upward trajectory. This would restore confidence in the market and pave the way for a rally to $68,248. Successfully breaking this resistance would invalidate the current bearish outlook and renew investor optimism.
Read more: Top 5 Most Secure Bitcoin Wallets of 2024
JasmyCoin takes a hit
JASMY emerged as the day’s biggest loser after the altcoin recorded an 8% decline over the past day. This drawdown occurred after the crypto asset failed to break above the $0.024 barrier.
The aforementioned barrier has kept the price contained since early August and has also been tested multiple times. A rise above this level is crucial to recover the losses seen during the late July drop.
JasmyCoin (JASMY) Chart on TradingView
However, considering the current conditions, a decline towards the crucial $0.020 support is possible. The only way to invalidate this bearish outlook is for JASMY to secure $0.024 as a support floor.
The article Why is the cryptocurrency market falling today, 10/01/2024? was first seen on BeInCrypto Brazil.
