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The total crypto market value is reeling from one of the largest single-day drops recorded in the last 12 months. Bitcoin’s price also rose above a critical support level today. There are speculations that the Federal Reserve might hold an emergency meeting following the market crash. During this period, investors are calling for a rate cut, but this is unlikely. Democratic lawmakers have called on the Commodity Futures Trading Commission (CFTC) to ban betting on US elections. The purpose of this ban is to protect the integrity of the election process.
What is Happening in the Crypto Market?
The total crypto market value experienced a drop to nearly $1.69 trillion on August 5 and is currently hovering at $1.93 trillion. During the intraday drop, the market witnessed over $319 billion worth of crypto assets being wiped out.
At the time of writing, TOTAL had risen by $63 billion, pushing the crypto market towards the $2.00 trillion resistance. Reversing this could provide further recovery to reclaim the losses recorded this week. If the resistance break fails, the crypto market could consolidate below $2.00 trillion and above $1.86 trillion. This process would make recovery more difficult.
Bitcoin Chart Analysis
At the time of writing, Bitcoin’s price was $55,603, having rebounded from yesterday’s low of $48,900. Interestingly, despite the broader market crash, Bitcoin still managed to close within a descending broadening wedge.
This bullish pattern has been pointing to a rise beyond Bitcoin’s all-time high of $73,800 for five months, waiting for consistent and sustainable bullish signals. If the global financial markets had not witnessed the recent crash, this breakout could have occurred by the end of July.
However, Bitcoin has another chance as it tested the lower trend line of the pattern as support. Although the breakout is well above the current price, Bitcoin’s price will need to overcome multiple resistance levels to rise again. Investors should watch the $54,509 level on the daily chart. A daily bar close below this level could cause Bitcoin’s price to lose momentum.
