The total market capitalization of cryptocurrencies (TOTAL) and Bitcoin (BTC) both fell below key support levels, indicating a possibility of further declines. That said, THORChain (RUNE) experienced a 16% correction within 24 hours.
Cryptocurrency market declines
On Monday, the total cryptocurrency market cap fell by $33 billion, closing at $2.23 trillion. The total market cap barely held above the critical support level of $2.21 trillion, reflecting increasing internal pressure within the market.
Historically, this support level has suppressed further declines in Total's stock price, suggesting that Total's stock price has a chance to rebound to $2.29 trillion. Investors view this as a potential turning point and hold a cautiously optimistic outlook for market recovery.
However, if the total market capitalization falls below the support level of $2.21 trillion, the recovery prospects will become meaningless. This could push the market cap down to $2.11 trillion, signaling greater losses for the broader cryptocurrency market.
Bitcoin continues to drop
Bitcoin's price recently fell below the support level of $68,248, attributed to Mt. Gox wallet transfers. Despite the decline, due to cautious optimism among investors, BTC may quickly regain this support level.
Recovering $68,248 is crucial for Bitcoin to reach a target of $71,367, which is a key barrier for Bitcoin to set a new all-time high. Regaining this level could reignite bullish momentum and attract buyers back to the market.
The Relative Strength Index (RSI) currently shows that bearish momentum has not fully intensified. However, if bearish pressure escalates, Bitcoin could further decline to $65,292, indicating that cryptocurrencies may enter a longer consolidation phase.
RUNE is crushed by bearish signals
RUNE continued to plummet on Monday, dropping nearly 16%, falling below the key support level of $4.50. This loss reflects ongoing bearish pressure and raises concerns about short-term stability.
Altcoins are currently focused on reclaiming the support level of $4.50, as this critical point is essential for their attempt to reach $5.37. Successfully breaking this level would mark a potential reversal and could attract new buying interest.
Even if RUNE fails to break above $4.50, it may avoid a significant drop. The 23.6% Fibonacci retracement level at $3.94 serves as strong support, providing a buffer for further declines and presenting a potential rebound point.
