Rising bearish sentiments have led to a sustained downtrend in cryptocurrency market activity. This is reflected in the decline in the total cryptocurrency market cap (TOTAL) and the price of Bitcoin (BTC). Stellar's XLM is the altcoin with the most losses in 24 hours.
In today's news:
President-elect Donald Trump is considering establishing an “AI czar” role to oversee federal artificial intelligence (AI) policies and advancements, emphasizing a commitment to maintaining the United States’ (U.S.) technological leadership.
A US federal appeals court has overturned Treasury Department sanctions on Tornado Cash, a cryptocurrency mixer that anonymizes transactions.
Market activity continues to decline
The total cryptocurrency market cap has dropped by $57 billion in 24 hours. TOTAL is currently at $3.15 trillion, just above the support formed at $3 trillion.
The recent market crash has thus triggered significant liquidations over the past 24 hours. According to Coinglass, 172,500 traders liquidated their positions, resulting in total losses of $484.65 million. Long traders suffered the most, accounting for $361 million of the liquidations.
If this downward trend continues, TOTAL will attempt to break the $3 trillion support level. If this critical level fails to hold, the total cryptocurrency market cap could fall to $2.82 trillion, a level last seen on November 15.
Cryptocurrency total market capitalization analysis. Source: TradingView
On the other hand, if selling activity subsides and the market witnesses a resurgence of buying pressure, it could lead TOTAL to reclaim its all-time high of $3.36 trillion.
Bitcoin poised to extend decline
Bitcoin is trading at $93,158, recording a 2% price decline in 24 hours. Readings from its daily chart confirm the possibility of a sustained short-term decline.
For example, according to its Moving Average Convergence Divergence (MACD) indicator, selling pressure is currently outweighing buying activity as the MACD line (blue) remains below the signal line (orange). This indicator tracks an asset’s price trends and highlights potential reversal points. When the MACD line crosses below the signal line, it suggests bearish momentum, indicating, for example, a potential downward price trend or weakening bullish momentum.
If this downward trend continues, the price of BTC could plummet below $90,000 and trade at $88,762.
Bitcoin Price Analysis. Source: TradingView
However, an influx of new demand for the cryptocurrency could put it on a trajectory to reclaim its all-time high of $99,588.
XLM is the biggest loser in the market
Stellar's XLM is the altcoin with the biggest losses in the last 24 hours. Trading at $0.44, it is down 9%. This drop is mainly driven by increased selling pressure, as many market participants take profits after the altcoin's recent rallies.
If the selling activity continues, the price of XLM will plunge further to $0.42. And if this support does not hold, the token could fall below $0.40 to $0.35.
XLM Price Analysis. Source: TradingView
On the other hand, if buying activity resumes, this bearish outlook will be invalidated. Thus, in this scenario, the price of XLM could rise to $0.50.
The article Why is the crypto market down today, 11/27/2024? was first seen on BeInCrypto Brazil.
