In short
Amid the renewed cryptocurrency ban in China and increased volatility, the cryptocurrency market capitalization has dropped by $61 billion to $3.30 trillion, breaking below the key support level of $3.31 trillion.
Bitcoin fell below $105,000 but rebounded to $106,152, aiming to reclaim the resistance level of $106,265 and move towards $110,000; if it fails, it could potentially drop to $102,734.
The OP price has dropped 9.3% to $0.70, but it is still holding the $0.69 support level; falling below this level could lead to a drop to $0.63, while a rebound could target the resistance level of $0.80.
The total cryptocurrency market capitalization (TOTAL) and Bitcoin (BTC) have both been heavily impacted today. The latter briefly fell below the $105,000 support level during trading, with a decline of $105,000. This drop was triggered by new bans imposed by China on cryptocurrency holders. Optimism (OP) also led declines among other altcoins, falling by 9.3%.
Today's news is: -
The U.S. Securities and Exchange Commission (SEC) and Binance.US have submitted a joint motion to resolve their ongoing legal dispute, marking a significant breakthrough after months of negotiations. However, due to potential procedural hurdles, it may still be too early to announce that the lawsuit is completely resolved.
NASDAQ-listed Chinese AI company Webus International plans to invest up to $300 million to establish XRP reserves to enhance cross-border payment capabilities. The company also plans to leverage XRP to support its broader blockchain development goals and potentially expand on-chain solutions across multiple sectors.
Cryptocurrency market declines
In the past 24 hours, the total cryptocurrency market capitalization has dropped by $61 billion to $3.30 trillion. This decline has caused the total to break below the key support level of $3.31 trillion, indicating increased short-term volatility.
This decline occurred after China once again banned the holding of cryptocurrencies, and previous mining and trading restrictions further exacerbated the situation. Nevertheless, bearish pressure is expected to diminish soon, giving the total an opportunity to regain the support level of $3.31 trillion.
However, if panic selling intensifies, it could trigger mass liquidations. This situation could further drive the cryptocurrency market capitalization down to $3.21 trillion, increasing investor risk.
Bitcoin falls below $105,000
The Bitcoin price touched a low today, falling below the $105,000 support level for the first time in ten days. However, BTC rebounded slightly afterwards, currently trading at $106,152, showing resilience amid recent volatility.
Currently, the Bitcoin price is below the resistance level of $106,265, aiming to regain this support level. If so, the Bitcoin price will experience a rebound and once again attempt to break through the resistance level of $110,000, indicating potential bullish momentum.
Although the overall market remains bullish, the risk of a decline still exists. If Bitcoin fails to hold the $105,000 support level, it may drop towards $102,734, increasing downward pressure on investors.
Optimism remains above the key support level
Optimism has been hit hardest among altcoins, falling by 9.3% with a trading price of $0.70. Nevertheless, OP remains strong, breaking through the key support level of $0.69, showing resilience amid recent market fluctuations.
The parabolic reversal indicator above the OP price suggests a potential decline. This indicates that OP may fall below the $0.69 support level and potentially drop to $0.63 in the coming days.
However, if OP can rebound from $0.69 and gain stronger bullish momentum, it may bounce back and break through the resistance level of $0.80. This would invalidate the current bearish outlook and indicate a revival of investor confidence.
