In short
The total market capitalization of cryptocurrencies rose by $16 billion, recovering after a $97 billion drop, with the $3.81 trillion support level being key for continued growth.
Bitcoin is consolidating between $117,261 and $120,000; unless the support level holds firm, volatility may occur; falling below $117,261 could test lower levels.
Conflux (CFX) increased by 12%, nearing the resistance level of $0.24; breaking through may push it towards $0.26, but failing to break could lead to a pullback to $0.21.
Amid expectations for the FOMC decision on Wednesday, the total market capitalization of cryptocurrencies (TOTAL) and Bitcoin (BTC) plummeted during intraday trading. The subsequent rebound propelled altcoins upward on the daily chart, with Conflux (CFX) rising nearly 12% in 24 hours.
Today's news is: -
President Trump has finalized a trade agreement ensuring a $350 billion investment, imposing a 15% tariff on South Korea. The agreement protects sensitive industries such as rice and beef, avoiding the originally planned 25% tariff set to take effect on August 1.
Trump's Digital Assets Task Force has released a report on the U.S. cryptocurrency industry, focusing on how to close tax loopholes. Despite Trump's traditionally laissez-faire stance, the report suggests expanding safe harbor programs but does not advocate for stricter regulations overall.
Cryptocurrency market declines but recovers
In the past 24 hours, the total market capitalization of cryptocurrencies increased by nearly $16 billion, reaching $3.83 trillion. Previously, the market rebounded from the critical support level of $3.81 trillion, indicating potential market stability and optimistic sentiment for future increases.
Despite a positive market performance, the market capitalization dropped significantly by about $97 billion during the intraday trading following the Federal Open Market Committee (FOMC) announcement. However, after the Federal Reserve announced it would maintain interest rates, the market quickly rebounded and is expected to reach $3.89 trillion in the coming days.
The future direction of the market depends on whether the current level can be maintained. If the support level of $3.81 trillion can hold, the market may continue to recover. However, if this level fails to hold, the market may slide again to $3.73 trillion, disrupting the recent bullish momentum.
Bitcoin has re-entered a consolidation phase
The current price of Bitcoin is $118,432, having previously dipped to $115,700 within the last 24 hours. The king of cryptocurrencies has re-entered the consolidation range between $117,261 and $120,000, indicating the market is in a period of indecision. This stability suggests that BTC may temporarily maintain this range and avoid a significant drop.
Given the current market environment, Bitcoin may continue to consolidate as investors remain cautious. Due to mixed market signals, Bitcoin's price may fluctuate within the consolidation range, avoiding any drastic movements.
If investors decide to lock in profits, the Bitcoin price may fall below the support level of $117,261. This move could bring the price back to the $115,000 mark and test lower levels. This scenario could indicate a potential reversal in Bitcoin's price momentum.
Conflux makes progress
The price of CFX has risen nearly 12% in the past 24 hours, currently trading at $0.23. This altcoin has capitalized on the overall market recovery, improving its position on the daily chart. This surge indicates optimistic market sentiment for CFX and suggests potential growth in the short term.
CFX is approaching the resistance level of $0.24. If it successfully breaks this resistance, this altcoin may continue its upward momentum, targeting a price point of $0.26. A successful break of $0.24 would benefit investors through sustained bullish momentum, enhancing market optimism.
However, if CFX fails to break through the resistance level of $0.24, this altcoin may pull back to the local support level of $0.21. Falling below this support level could push CFX down to $0.19, negating the bullish outlook and indicating a potential downward trend.
