Why are cryptocurrency markets down today?

闲鱼翻身不再咸鱼 · 2023-08-03T08:37:46.000Z

simply put Crypto Market Capitalization (TOTALCAP) has erased yesterday’s gains and faces the risk of a breakout from key horizontal support areas. Bitcoin (BTC) price broke out of a parallel channel but was later rejected by a significant horizontal resistance area. If it falls again, the breakout may become invalid. COMP prices have fallen significantly since their yearly highs. The price is approaching the $58 horizontal support area. Cryptocurrency market capitalization (TOTALCAP) and Bitcoin (BTC) price fell sharply yesterday, erasing most of the gains. Composite ( COMP ) is approaching key support at $58.

simply putThe cryptocurrency market capitalization (TOTALCAP) has erased yesterday’s gains and is at risk of breaking down from a key horizontal support area.
Bitcoin (BTC) price broke out of a parallel channel but was subsequently rejected by an important horizontal resistance area. The breakout could be invalidated if it falls again.
COMP price has declined significantly since the yearly high. The price is close to the $58 horizontal support area.
The cryptocurrency market capitalization (TOTALCAP) and Bitcoin (BTC) price fell sharply yesterday, erasing most of the gains. Compound ( COMP ) is approaching the critical support level of $58.
Binance and its CEO Changpeng Zhao received a subpoena from a U.S. court in June amid rumors that the exchange was facing fraud charges.
Cryptocurrency Market Cap (TOTALCAP) Regains YesterdayTOTALCAP has been falling since reaching a high of $1.24 trillion on July 13. This decline led to a low of $1.11 trillion on August 1.
The price then rebounded, forming a bullish candlestick (green icon) and confirming the $1.12 trillion area as support. However, the rebound was short-lived as the price erased nearly all of the gains the next day.
TOTALCAP is now trading in the $1.12 trillion region again.
If the price rebounds again, it could rise by 9% to $1.24 trillion. However, if there is a breakdown, it could fall by 5% to the $1.08 trillion support area.
Bitcoin (BTC) Price Faces Rejection Despite BreakoutThe price of BTC has been following a descending parallel channel after reaching a yearly high of $31,800 on July 13. It fell to a low of $28,585 on August 1.
However, the price subsequently bounced back, confirming the channel’s midline as support. Since the channel is considered a corrective pattern, a breakout of it is the most likely scenario going forward.
Despite the breakout, BTC was rejected by the $29,800 resistance area yesterday and erased most of its gains. It now risks falling back inside the channel.
If this is indeed the case, the most likely scenario for the price going forward is a drop to the channel support line at $27,200. This would be equivalent to a drop of 6.50%. However, if BTC rebounds, it may once again try to clear the $29,800 resistance area.
Compound (COMP) Price Falls to SupportCOMP price has been falling since reaching a yearly high of $85.90 on July 16. Nine days later, this decline resulted in a low of $58.29. Although the price subsequently rebounded (green icon), the rebound was short-lived and COMP is once again trading in the $58 region.
Whether it rebounds or falls will determine the future trend.
A rebound could drive the stock up 45% to a yearly high near $85. On the other hand, a breakdown could see the price return to the descending resistance line at $45. This would represent a 24% decline.