In Brief
- The total market cap dropped by $28 billion but holds above $3.10 trillion, a critical support level amid rising volatility
- Bitcoin hit a monthly low at $92,605, with $89,800 as a vital support to prevent deeper losses.
- Helium (HNT) fell 10% to $5.91, nearing a critical $5.51 support level, with recovery contingent on reclaiming $6.33
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The total crypto market cap (TOTAL) and Bitcoin (BTC) continued their decline today owing to persistent bearishness. This drawdown extended to altcoins as well, with Helium (HNT) emerging as the worst performer of the day, falling by 12%.
In the news today:-
- Tether transferred 7,629 BTC (around $700 million) from Bitfinex to its Bitcoin reserve on December 30, marking its largest addition since March 2024. The March transaction saw 8,888.88 BTC added to its reserves.
- BlackRock’s Bitcoin ETF ‘IBIT’ achieved the “Greatest Launch in ETF History” in 2024, quickly amassing billions. It outpaced long-standing ETFs, solidifying BlackRock as a top Bitcoin holder.
The Crypto Market Is Taking Hits
The total crypto market cap declined by $28 billion today, settling at $3.16 trillion. Despite this sharp drop, the market cap is still holding above the critical support level of $3.10 trillion. This threshold remains pivotal in determining the market’s immediate direction amidst growing volatility and bearish sentiment.
Should the decline persist, the market cap risks falling below $3.10 trillion, potentially testing the $2.93 trillion support level. A breach of this secondary threshold could signal deeper corrections across the market, raising caution among investors and exacerbating the impact of current selling pressure.
However, if the total market cap manages to reclaim $3.28 trillion as support, a recovery may be on the horizon. This reversal could restore upward momentum, enabling the market to recoup recent losses and renew optimism among traders. Achieving this level is critical to invalidating the prevailing bearish narrative.
Bitcoin Is Close To An Old Support
Bitcoin’s price dropped to $92,605 today, hitting a monthly low after breaching the $93,625 support level. This decline has significantly eroded recent gains, creating heightened concerns for investors. The market downturn reflects growing bearish momentum, which could lead to further price instability if the cryptocurrency fails to regain key levels.
Currently, Bitcoin is approaching the critical support level of $89,800. Staying above this threshold is vital for avoiding deeper losses, as a breach could drive the price down to $85,000. This potential drop would amplify investor caution, emphasizing the importance of Bitcoin holding its ground in the coming days.
Recovery hinges on Bitcoin reclaiming $93,625 as support. Achieving this milestone could enable BTC to challenge $95,668 as a new support level, effectively nullifying the bearish outlook. A successful rebound may restore investor confidence and reinforce Bitcoin’s trajectory toward regaining its previous momentum in the market.
Helium Loses Declines Further
Helium’s (HNT) price experienced a sharp 10% drop in the last 24 hours, falling to $5.91. This decline pushed the altcoin below the $6.33 support level, marking a significant monthly low.
With HNT now trading near $5.91, it edges closer to testing the key support level of $5.51, last visited in mid-November. A dip below this point could result in further losses, intensifying bearish sentiment.
The path to recovery for HNT lies in reclaiming $6.33 as a support level. Such a move could invalidate the current bearish outlook and offer an opportunity for an upward trend. Until this milestone is achieved, the altcoin remains under significant pressure, with risks of further declines looming.