Total crypto market capitalization (TOTAL) and Bitcoin have slightly decreased in the past 24 hours, possibly due to the market cooling down. However, in contrast to this slight corrective trend, the altcoin MemeCore (M) has suffered a significant shock with a drop of up to 29%.
Notable news today:
– The Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve (Fed) have allowed banks to hold crypto on behalf of customers, while emphasizing user protection. However, banks are not permitted to let customers hold access keys to the custody mechanism.
– Strategy (formerly MicroStrategy) has committed to investing $472.5 million in Bitcoin, leading other names like Matador Technologies. Matador plans to raise CAD 657 million (approximately USD 478 million) over the next 25 months, with most of the capital intended for additional Bitcoin purchases.
Total crypto market capitalization breaches support level
Total crypto market capitalization has decreased by $36 billion in the past 24 hours, now at $3.71 trillion. This decline follows a strong upward trend, indicating that the market is showing signs of cooling down.
This is seen as a corrective phase reflecting the overall market sentiment. If selling pressure continues to increase, the possibility of the market further weakening in the short term is entirely plausible.
Accordingly, the total market capitalization could drop to $3.49 trillion, erasing much of the recent gains. This scenario could mark a shift in investor sentiment, weakening the current bullish momentum.
However, if macroeconomic conditions improve and investor confidence strengthens, the market could recover. Total market capitalization could rise to $3.73 trillion, and the $3.64 trillion mark serves as an important support threshold. This would help regain upward momentum and push prices higher.
Bitcoin maintains its position
Currently, Bitcoin is priced at $117,343, slightly dropping below the important $118,000 mark – cooling off after a recent price surge. This correction indicates the potential for a price consolidation phase, which could set the stage for a strong breakout in either direction.
If the downward trend continues, Bitcoin could slide deeper, around the $115,000 mark. This is seen as a key support area, serving as a foundation for potential recovery. If Bitcoin holds above this level, the price may regain momentum and aim for higher levels in the near future.
Conversely, if Bitcoin regains its upward momentum, it could easily surpass the historical peak of $119,966. Breaking this resistance level would open opportunities for BTC to reach the $120,000 mark. Such a move could trigger stronger bullish sentiment among investors and attract more capital into the market.
MemeCore drops significantly
MemeCore (M) has plummeted 29% in just 24 hours, currently trading at $0.41. This memecoin has plunged after failing to surpass the resistance level of $0.84. This decline reflects the general difficulties in the market, as investors are showing caution.
If the current downward trend continues, MemeCore could drop further, testing the support area of $0.29. This will be a crucial level, and if breached, it could signal a stronger downtrend, putting this altcoin at risk of deeper declines in the coming days.
However, if MemeCore regains investor interest, the price could recover quickly. A rebound would bring the price back to the $0.84 area, even surpassing this resistance level. If that happens, the current bearish scenario could be invalidated.