The crypto market, represented by TOTALCAP, and the price of Bitcoin (BTC) have experienced significant fluctuations, with both negating most of their recent gains. Additionally, the cryptocurrency Compound (COMP) is currently approaching a critical support level at $58.
The crypto market, represented by TOTALCAP, and the price of Bitcoin (BTC) have experienced significant fluctuations, with both negating most of their recent gains. Additionally, the cryptocurrency Compound (COMP) is currently approaching a critical support level at $58.
TOTALCAP, which represents the overall market capitalization of cryptocurrencies, reached a high of $1.24 trillion on July 13. However, it has since declined and hit a low of $1.11 trillion on August 1. Although there was a brief bounce, the gains were quickly reversed, and TOTALCAP is now back around the $1.12 trillion level. If it bounces again, it could potentially increase by 9% to $1.24 trillion. Conversely, if it breaks down, a 5% drop to the support area at $1.08 trillion may occur.
BTC's price has been following a descending parallel channel since its peak at $31,800 on July 13. After reaching a low of $28,585 on August 1, it rebounded and confirmed the channel's midline as a support level. While a breakout from the channel seemed likely, BTC was rejected by the $29,800 resistance area and is now at risk of falling back inside the channel. If this happens, a drop to the support line at $27,200 could be expected, amounting to a 6.50% decrease. However, if BTC bounces, it might attempt to clear the $29,800 resistance area again.
As for Compound (COMP), its price has been in decline since reaching a new yearly high of $85.90 on July 16. It fell to $58.29 nine days later, and although there was a bounce, COMP is currently trading around the $58 area once more. The future trend will depend on whether it bounces again or breaks down. A bounce could potentially lead to a 45% increase towards its yearly highs near $85. Conversely, a breakdown might take the price back to a descending resistance line at $45, resulting in a 24% drop.
As always, cryptocurrency markets are highly volatile, and investors should exercise caution and conduct their own research before making any investment decisions.