The crypto market value (TOTALCAP) and Bitcoin (BTC) price sharply dropped yesterday, wiping out most of their gains. Additionally, Binance CEO Changpeng Zhao received a subpoena from a US court in June, leading to speculation that fraud charges will be filed against the exchange.
Decline in the Crypto Market!
TOTALCAP has fallen since its peak of $1.24 trillion on July 13. The decline resulted in a $1.11 trillion drop on August 1. The price then rebounded, creating an uptrend candle and confirming the $1.12 trillion area as support. However, the bounce was short-lived as the price nearly reversed all its gains the next day.
Nevertheless, TOTALCAP is now trading within the $1.12 trillion range again. If the value rises again, it could reach $1.24 trillion, a 9% increase. Additionally, if a breakdown occurs, a 5% drop to the $1.08 trillion support area is possible. BTC’s price has been following a descending parallel channel since reaching its yearly high of $31,800 on July 13. This decline reached $28,585 on August 1. However, the price subsequently recovered, confirming the channel’s midline as a support level. Since channels are considered corrective patterns, a breakout from this channel could be the most likely scenario in the future.
Decline in Bitcoin!
Despite the development, BTC was rejected by the $29,800 resistance area yesterday and reversed most of its gains. It now faces the risk of falling back into the channel. It could be the most likely price scenario if the assumption is realized and the channel’s support line drops to $27,200. This would mean a 6.50% decrease. However, if BTC bounces, it may make another attempt to surpass the $29,800 resistance area.
Meanwhile, the release of the US Service PMI data today is expected to cause volatility in the crypto markets, according to crypto experts. They also noted that a strengthening US economy could cause a decline in risky assets like cryptocurrencies.
