After a week of active trading up to yesterday, market sentiment is now somewhat more cautious as investors begin to pull back, creating a gloomy atmosphere amid rising concerns.
The total crypto market capitalization (TOTAL) and Bitcoin have both recorded a slight decline over the past 24 hours, reflecting a general weakening in market momentum. The meme coin SPX is currently the token with the most significant loss during this period.
TOTAL is struggling to break the resistance level
In the past 24 hours, the total crypto market capitalization has decreased by $20 billion, currently standing at $3.3 trillion, still struggling to break the narrow range it has traded in since last week.
The one-day chart shows that since July 3, TOTAL has encountered resistance at $3.35 trillion and found support at $3.27 trillion. This narrow trading range reflects investors' hesitation, as both buying and selling forces are not strong enough to create a clear breakthrough in either direction.
In the case of stronger buying pressure, the market could surpass the resistance level of $3.35 trillion, and if it maintains this upward momentum, TOTAL could continue climbing to $3.44 trillion. However, this requires a significant increase in buying activity to sustain upward pressure.
Conversely, if pessimistic sentiment spreads and volatility increases, TOTAL could break the support level of $3.27 trillion. Such a move would open up the possibility of further declines, with the next target level potentially being $3.22 trillion.
Bitcoin is sliding as selling pressure increases
Bitcoin, the leading cryptocurrency, is currently trading at $108,570, down 0.2% from yesterday. However, a notable point is that daily trading volume has increased by 15%, totaling $44 billion, which reinforces the view that selling pressure is rising in the market.
When the price of an asset falls while trading volume increases, this often indicates that many traders are liquidating their positions, possibly due to negative sentiment, fear, or losses. If this trend continues, Bitcoin may continue to slide down to $106,295.
On the other hand, if buying pressure increases and strengthens the market, the price of Bitcoin could recover and return to $109,267. This change will depend on the level of investor participation and the improvement in market sentiment.
SPX6900 (SPX) has lost the most in the past 24 hours
The price of SPX has sharply dropped 8% in the past 24 hours, making it the altcoin with the largest losses during this period. On the daily chart, the Balance of Power (BoP) index for SPX is showing a continued downward trend. BoP is an indicator measuring the balance between buying and selling pressure in the market over a specific period. Currently, this indicator is at -0.42, indicating that selling pressure is dominant.
When the Balance of Power (BoP) of an asset is negative, this indicates that sellers are in control of the market, pushing prices down. If this trend continues, SPX may face the possibility of further declines and slip below $1.21.
However, if buying pressure increases and creates a wave of recovery, the price of SPX could rebound and rise to $1.35. This change will depend on whether traders have enough confidence to return to the market.
