Markets
Why the Cryptocurrency Market is Down Today
The total cryptocurrency market capitalization (TOTAL) and Bitcoin (BTC) price have both witnessed a decline stemming from a key development in the Mt. Gox case yesterday. The resulting panic led to massive selling that liquidated over $300 million in long contracts. Surprisingly, some altcoins, including those similar to Fetch.ai (FET), have benefited from this.
In today’s news: –
Total market capitalization loses a lot
The total cryptocurrency market capitalization saw outflows of nearly $136 billion during intraday lows as the broader market turned bearish. TOTAL closed around the $2.2 trillion mark, a rather disappointing development.
The decline resulted from FUD and panic resulting from the news of Mt. Gox Starts BTC and Bitcoin Cash (BCH) Refunds. This led the market to believe that a sudden surge in sales following refunds could trigger a crash. Hence, investors moved to sell their stocks to secure gains.
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Total market capitalization analysis. Source: Trading visualization
With the FUD gone, the recovery could take place once the $2.20 trillion level becomes support again.
Bitcoin Price Loses Key Support
The price of Bitcoin, following the worrying path of speculated selling, fell below $60,000 during yesterday’s intraday low. However, the world’s largest crypto asset managed to post a slight recovery, closing at $61,000 on Monday.
The summer sell-off has led to continued bearishness among investors, making BTC’s recovery difficult.
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However, the level to watch is $63,000 as securing it as a support level is key to seeing the recovery again.
Despite the market FUD, net inflows into larger Bitcoin wallets have reached their highest level since late May, says Juan Pellicer, senior researcher at IntoTheBlock.
“Significant accumulation by large Bitcoin holders has repeatedly signaled local market lows this year. While the current numbers are not as high as the peaks seen during previous accumulation phases, they come at an interesting time, just when bearish market sentiment is increasing,” Pellicer added.
Fetch.ai impresses investors
While BTC and other major crypto assets have suffered, some altcoins have benefited from the shift in market sentiment, including the price of Fetch.ai. The altcoin, which fell to a three-month low, has rebounded from $1.4.
In the last 24 hours, FET has seen an 18% increase in price, causing the altcoin to trade at $1.6. The price of Fetch.ai is now set to break out of the key resistance at $1.7.
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This would aid the recovery, but a failure could send the altcoin down to $1.4, invalidating the bullish thesis.
Disclaimer
In line with the Trust project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto strives to provide accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our Terms and conditions, Privacy PolicyAND Disclaimer They have been updated.