In the past 24 hours, the total market capitalization of cryptocurrencies has dropped by 4.60%, suggesting a bearish trend may emerge by the end of the year. Bitcoin (BTC) also fell during this period, with many altcoins experiencing double-digit losses. Among the top 100 cryptocurrencies, the dog-themed token Floki (FLOKI) had the largest decline.
The Fed's interest rate cut has led to a decline in Total's stock price, which may further decrease.
On December 18, the total market capitalization 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), lower than the 50 basis points anticipated by the market a few months ago.
Additionally, Federal Reserve Chairman Jerome Powell stated that the reserve bank does not intend to hold Bitcoin, which seems to have accelerated the drop in Bitcoin. From a technical perspective, TOTAL's decline has brought it below the 20-day Exponential Moving Average (EMA) (blue).
Generally, when the market capitalization is above the EMA, the trend is bearish. Conversely, when the market capitalization is below the EMA, the trend is bullish. Therefore, if this situation persists, the total market capitalization may drop to $3.29 trillion.
Cryptocurrency Market Capitalization Analysis.
If it falls below the 50-day moving average (yellow), things could get worse. If this happens, the total market capitalization of the cryptocurrency could slide to $3.03 trillion. However, if market participants buy the dip, this situation could change, and the total market capitalization may rebound to $3.73 trillion.
Bitcoin is down but faces rebound potential.
After Powell's hawkish remarks, the Bitcoin price briefly fell below $100,000, then slightly rebounded to $101,252 at the time of writing. According to the daily chart, the bulls seem to have formed strong support at $100,090.
If successfully held, 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's the case, then the price could rise to $108,397. If bullish momentum strengthens, BTC may rise and bring higher returns during Christmas. But if the bears break through this support level, the cryptocurrency could drop to $96,138.
Floki down 12.60%: yet to recover.
As mentioned earlier, several altcoins have experienced significant declines as the cryptocurrency market capitalization decreases. FLOKI leads the decline, down 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) reveals that the reading has fallen below the neutral point of 50.00, indicating bearish momentum around the token.
Floki Daily Analysis.
If the trend continues, the price of FLOKI may drop to $0.00014. However, if the RSIA reading reaches the oversold area of 30.00 or below, the price may reverse. In this case, the cryptocurrency could jump to $0.00030.