Total cryptocurrency market capitalization (TOTALCAP) and Bitcoin (BTC) continued to decline today (31). This decline extended to altcoins as well, with Helium (HNT) emerging as the worst performer of the day, falling 12%.
In today's news:
Tether transferred 7,629 BTC (roughly $700 million) from Bitfinex to its Bitcoin reserve on Dec. 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 “Largest Launch in ETF History” in 2024, quickly amassing billions. It outpaced long-standing ETFs, solidifying BlackRock as a top holder of Bitcoin.
Crypto market is suffering blows
The total cryptocurrency market cap fell by $28 billion today, settling at $3.16 trillion. Despite this sharp drop, the market cap is still above the critical support level of $3.10 trillion. This threshold remains essential for determining the immediate direction of the market amid rising volatility and bearish sentiment.
If the decline continues, the market value is at risk of 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, increasing caution among investors and exacerbating the impact of the current selling pressure.
TOTALCAP Chart on TradingView
However, if the total market cap can reclaim $3.28 trillion as support, a recovery could be on the horizon. Such a reversal could restore upward momentum, allowing the market to recover recent losses and renew optimism among traders. Reaching this level is key to invalidating the prevailing bearish narrative.
Bitcoin is close to old support
Bitcoin price dropped to $92,605 today, hitting a monthly low after breaking the $93,625 support level. This decline significantly eroded recent gains, creating deeper concerns for investors. The market’s decline reflects growing bearish momentum, which could lead to further price instability if the cryptocurrency fails to reclaim key levels.
Bitcoin is currently approaching the critical support level of $89,800. Staying above this threshold is vital to avoid further losses, as a breach could take the price to $85,000. This potential drop would amplify investor caution, emphasizing the importance of the asset maintaining its position in the coming days.
Bitcoin Chart on TradingView
The bounce is contingent on Bitcoin reclaiming $93,625 as support. Reaching this milestone could allow BTC to challenge $95,668 as a new support level, effectively nullifying the bearish outlook. A successful bounce could restore investor confidence and reinforce Bitcoin’s trajectory to regain its previous market momentum.
Helium falling
Helium suffered a sharp 10% drop in 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 is close to testing the key support level of $5.51, last visited in mid-November. A drop below this point could result in further losses, intensifying the bearish sentiment.
Helium Chart on TradingView
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 provide an opportunity for an uptrend. Until this milestone is reached, the altcoin remains under significant pressure, with risks of further declines looming.
The article Why is the crypto market falling today, 12/31/2024? was first seen on BeInCrypto Brazil.
