Total crypto market capitalization (total) and Bitcoin (BTC) were once again a huge hit today. The latter fell below $105,000 support during the mid-day lows. The decline was the result of China imposing a new ban on even holding cryptocurrency. Optimism (OP) led the Altcoins in the same spot as they recorded a 9.3% drop.
In today’s news: –
Dip in the crypto market
Total crypto market capitalization has dropped by $61 billion in the last 24 hours to $3.30 trillion. This decline marked a loss of a major support level of $3.31 trillion, indicating an increase in short-term volatility.
The decline has exacerbated previous mining and trading restrictions following an updated ban on China’s cryptocurrency holdings. Nevertheless, bear pressure is expected to fade soon, giving the opportunity to regain a support level of $3.31 trillion in total.
However, if panic sales are strengthened, it could lead to major liquidation. This scenario could drive the crypto market capitalization to another $3.21 trillion, increasing the risk for investors.
Bitcoin is below $105,000
Bitcoin prices fell below $105,000 support for the first time in 10 days at today’s intraday lows. However, BTC has since been slightly rebounded, trading at $106,152, showing resilience amid recent volatility.
Currently trading under the $106,265 resistance, Bitcoin is aiming to regain this level as support. Doing so will allow for a recovery and a new push to resist $110,000, indicating potential bullish momentum.
The wider market remains bullish, but there is a risk of decline. Failing to retain $105,000 in support, it reduced Bitcoin towards $102,734, increasing downside pressure for investors.
Optimism surpasses major support
Optimism took the biggest hit among altcoins with a 9.3% drop, trading at $0.70. Nevertheless, the OP remains strong beyond its key support level of $0.69, indicating resilience amid recent market volatility.
The parabolic SAR indicator, located above the OP price, indicates a potential decline. This suggests that the OP could fall below the $0.69 support and fall to $0.63 in the coming days.
However, if the OP bounces back $0.69 and gains strength momentum, it could recover and infringe $0.80 resistance. This has overridden the current bearish outlook and updated investor trust.
Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although Beincrypto is committed to accurate and unbiased reporting, market conditions are subject to change without notice. Always carry out your research and consult with an expert before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
