The total crypto market cap (TOTAL) and Bitcoin (BTC) both noted a massive dip over the last 24 hours. With the broader market cues turning bearish, altcoins suffered as well and POPCAT retained its position as the worst performing asset of the day, falling by 24%.
In the news today:-
- MicroStrategy purchased 21,550 more Bitcoin for $2.1 billion, marking its second December purchase at $98,783 per BTC. Since November, the firm has bought over $15 billion in Bitcoin, with CEO Michael Saylor continuing his strategy of advocating Bitcoin as a long-term investment.
- Riot Platforms plans to raise $500 million through a private offering of convertible senior notes due in 2030 to purchase more Bitcoin. The offering, aimed at institutional buyers, includes an additional $75 million option and reflects Riot’s confidence in Bitcoin as a long-term asset.
The Crypto Market Corrects
The total crypto market cap recently fell by $267 billion, dropping below the $3.49 trillion support level to $3.35 trillion. This decline follows a cooling-off period after recent rallies.
This drawdown was anticipated as the crypto market cooled off following its recent rallies. The market is vulnerable to further losses, and if the downtrend continues, the total market cap could slide toward the $3.10 trillion support level. A breach of this level could signal deeper declines across the space.
However, if the market starts to recover, the crypto space could reclaim the $3.49 trillion level as support. This would provide a foundation for potential further rises.
Bitcoin Notes a Decline
Bitcoin’s price dropped to $96,751, holding above the $95,668 support level. This recent dip reflects a shift in market sentiment, with profit-taking likely contributing to the price decline.
Failing to retain $100,000 as support suggests that this psychological level may be acting as a point of resistance. Bitcoin’s inability to hold above it could indicate reduced bullish sentiment, with profit-taking and caution dominating the market. The next crucial support is at $95,668, which could determine BTC’s next move.
If the decline continues and Bitcoin breaks through the $95,668 support, it could trigger a deeper fall toward $89,800. A breach of this level would reinforce the bearish outlook, signaling further downside potential for Bitcoin.
POPCAT Loses Multi-Week Support
POPCAT faced a steep 24% drop over the last 24 hours, making it the worst-performing asset for the second consecutive day. This sharp decline indicates that the meme coin is struggling to regain its bullish momentum.
Currently trading at $1.14, POPCAT is at risk of falling further. A potential drop to $1.00 is possible, as the altcoin has recently lost multi-week support. Without a reversal in momentum, a continued decline could follow, leading to more significant losses for holders.
To avoid further losses, POPCAT needs to reclaim the $1.21 support level. A successful rebound at this price point could pave the way for recovery and invalidate the bearish outlook. Positive market sentiment and strong demand could trigger the altcoin’s upward movement in the near future.
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