In the past 24 hours, the total market cap of cryptocurrencies has dropped by 4.60%, suggesting a potential bearish trend by the end of this year. Bitcoin (BTC) has also fallen, during which many altcoins experienced double-digit losses. Among the top 100 cryptocurrencies, the dog-themed token Floki (FLOKI) saw the largest decline.
The Fed's interest rate cut led to a drop in Total's stock price, which may decline further.
As of December 18, the total market cap of cryptocurrencies was $3.63 trillion. Today, it has fallen to $3.43 trillion. This drop may be related to the Fed's interest rate cut of 25 basis points (25bps), down from the 50 basis points that the market expected a few months ago.
Additionally, Fed Chairman Jerome Powell stated that the Reserve Bank does not intend to hold Bitcoin, which seems to have accelerated Bitcoin's decline. From a technical perspective, the drop in TOTAL has caused it to fall below the 20-day Exponential Moving Average (EMA) (blue).
Typically, when the market cap is above the EMA, the trend is bearish. Conversely, when the market cap is below the EMA, the trend is bullish. Therefore, if this situation persists, the total market cap could decrease to $3.29 trillion.
Cryptocurrency Market Cap Analysis.
If it falls below the 50-day moving average (yellow), things could worsen. If this happens, the total market cap of cryptocurrencies could slide to $3.03 trillion. However, if market participants buy the dip, this situation could change, and the total market cap might rebound to $3.73 trillion.
Bitcoin is down but faces rebound potential.
After Powell's hawkish remarks, the price of Bitcoin briefly fell below $100,000, then slightly rebounded to $101,252 at the time of writing. According to the daily chart, bulls seem to have formed strong support at $100,090.
If it successfully holds, BTC can avoid falling below $100,000 again in the short term. However, it is worth noting that Bitcoin needs strong buying pressure to maintain this momentum.
Bitcoin Daily Analysis.
If that is the case, the price could climb to $108,397. If bullish momentum strengthens, BTC could rise and provide higher returns during Christmas. But if bears break this support level, the cryptocurrency could fall to $96,138.
Floki down 12.60%: yet to recover.
As mentioned earlier, several altcoins experienced significant drops as the cryptocurrency market cap declined. FLOKI led the way with a drop of 12.60% in the past 24 hours.
On the daily chart, the price of FLOKI is $0.00019. Since Sunday, December 15, the total decline has reached 24%. Checking the Relative Strength Index (RSI) shows that the reading has dropped below the neutral point of 50.00, indicating bearish momentum around the token.
Floki Daily Analysis.
If the trend continues, the price of FLOKI could drop to $0.00014. However, if the RSI reading reaches 30.00 or below the oversold zone, the price might reverse. In this case, the cryptocurrency could jump to $0.00030.
