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The Bitcoin (BTC) price and the crypto market cap (TOTALCAP) are trading below important horizontal support levels. The Compound (COMP) price validated its previous resistance as support.
The world’s biggest asset manager BlackRock is recommending an optimal portfolio allocation of 84.9% Bitcoin. BlackRock is doubling down on its bet after filing a spot ETF application.
Crypto Market Cap (TOTALCAP) Continues Trading Below Support
The TOTALCAP experienced a decline after coming close to its highest point of the year around July 13. Initially, the price remained above the support level of $1.15 trillion. However, on July 24, it broke below this support area, indicating the possibility of a downward trend starting.
If the decrease continues, the next significant support level to watch for is $1.10 trillion. Conversely, if the price rises above the $1.15 trillion area again, it will invalidate the previous breakdown and suggest a renewed effort to reach a new yearly high.
Read More: Bitcoin (BTC) Price Prediction
Bitcoin (BTC) Price Hovers Inside Fib Support
Since July 13, the price of BTC has been on a decline, catalyzed by the rejection from the resistance line of an ascending parallel channel. This decline led the price to reach the support line of the same channel.
On July 18, BTC experienced a bounce but failed to sustain any upward momentum. Instead, on July 24, it broke down further, confirming a corrective phase in its price movement.
Currently, BTC is trading above the 0.382 Fib retracement support level at $29,100. If this level fails to hold, the next support to look out for is $28,200. Conversely, a significant rebound could push the BTC price back toward the channel’s support level at $29,700 and possibly cause a reclaim.
Compound (COMP) Price Bounces at Crucial Support
The COMP price broke out from a descending resistance line on June 29 and reached a new yearly high of $85.90 on July 16. The price fell afterward but bounced sharply yesterday, validating the $57 area as support and creating a long lower wick (green icon).
If the bounce continues, COMP can increase to the next resistance at $100. However, if the COMP price closes below $57, a decrease to the previous resistance line at $45 is expected.