Why Is the Crypto Market Down Today?

6 February 2023, 09:00 GMT+0000
Updated by Geraint Price
6 February 2023, 09:00 GMT+0000
In Brief
  • The Crypto Market Cap is trading inside an ascending parallel channel.
  • Bitcoin (BTC) has broken down from an ascending parallel channel.
  • Aptos (APT) created a double top pattern,
  • promo

The Total Crypto Market Cap (TOTALCAP) is trading inside an ascending parallel channel while the Bitcoin (BTC) price has broken down from one. Aptos (APT) has created a bearish pattern.

In the news, Memeland spent 800 Ethereum (ETH) on Bored Ape Yacht Club (BAYC) non-fungible tokens (NFTs) with rare accessory traits.

The now-bankrupt exchange FTX is threatening to sue politicians and members of congress if they do not return campaign contributions made to them.

And the crypto exchange Huobi said that it will list the FTX Users’ Debt (FUD) token, which contains the FTX debt on behalf of creditors.

Crypto Market TOTALCAP Hovers Just Above Support

The crypto market cap (TOTALCAP) has traded in an ascending parallel channel since Jan. 23. Such channels are considered bearish patterns, meaning that they lead to breakdowns most of the time.

/Related

More Articles

On Jan. 29, the price was rejected by the channel’s resistance line and fell to its support line. After an upward movement, another rejection followed on Feb. 2 (red icon).

The TOTALCAP once more risks breaking down from the channel. If this occurs, it could lead to a drop to the 0.382 Fib retracement support level at $935 billion. On the other hand, a breakout could take TOTALCAP to the next resistance at $1.14 trillion.

Crypto Market Cap (TOTALCAP) Movement
TOTALCAP/USDT Six-Hour Chart. Source: TradingView

Bitcoin Breaks Down From Channel

The Bitcoin price has traded in an ascending parallel channel since Jan. 23. On Feb. 2, it was rejected by the channel’s resistance line after reaching a high of $24,258. Then, it broke down on Feb. 6.

Due to the breakdown and the possibility of a completed five-wave upward movement, the continuation of the decrease is expected. In this case, the BTC price could fall to $20,930, the 0.382 Fib retracement support level.

On the other hand, reclaiming the channel would invalidate this bearish outlook and suggest that the Bitcoin price can increase to $26,000.

Bitcoin (BTC) Price Breakdown
BTC/USD Six-Hour Chart. Source: TradingView

Aptos Falls After Double Top

The APT price has fallen under a descending resistance line since completing a double top pattern (red icons) on Jan. 30. The double top is considered a bearish pattern, meaning that it leads to downward movements most of the time.

APT has nearly reached the 0.382 Fib retracement support level at $13.76. A breakdown from it could cause a fall to the 0.5 Fib retracement support level at $11.72. On the other hand, a bounce could lead to an upward movement toward the resistance line at $16.40.

Aptos (APT) Double Top
APT/USDT Daily Chart. Source: TradingView

For BeInCrypto’s latest crypto market analysis, click here.

Disclaimer

BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.