Why Is the Crypto Market Starting the Week Down? (12/30/24)

The cryptocurrency market has been experiencing a slight bearish trend recently, as reflected in the daily price chart fluctuations. Over the past 24 hours, the total crypto market capitalization dropped by $50 billion, underscoring the ongoing uncertainty in the sector.

Crypto Total Market Cap in an Accumulation Phase

Various macroeconomic factors have contributed to this volatility, creating a cautious environment for investors. As a result, the market remains vulnerable below the resistance level of $3.28 trillion. Prolonged uncertainty could push the total crypto market value toward the critical support level of $3.10 trillion. Holding this support is crucial to preventing further declines that could intensify losses stemming from recent market corrections.

If the market manages to turn the $3.28 trillion resistance into new support, it could signal a recovery and restore upward momentum, potentially targeting $3.49 trillion. This move would represent a significant rebound, offsetting some of the losses observed in the current downtrend.

Bitcoin Holds Above Support

For Bitcoin, the world’s most traded cryptocurrency, the situation is also at a pivotal point. Bitcoin is currently trading at $93,753, holding above its critical support level of $93,625. The cryptocurrency aims to break through the $95,668 resistance and turn it into new support—an important step for initiating a short-term recovery.

However, if overall market conditions remain bearish, Bitcoin risks falling below the $93,625 support. Such a drop could drive its price down to $89,800, erasing recent gains and increasing selling pressure.

On the other hand, if Bitcoin successfully converts the $95,668 resistance into support, the path could open for the cryptocurrency to reach the significant $100,000 milestone. Achieving this milestone would invalidate the bearish outlook and restore bullish momentum, bringing renewed optimism to crypto investors and enthusiasts alike.