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Why Is The Crypto Market Up Today?

source-logo  beincrypto.com 23 May 2024 08:00, UTC

The total market cap (TOTAL) is stable for now as the crypto market continues to cool down. Bitcoin’s (BTC) price will see some consolidation over the next few trading sessions. However, Bittensor DAO token (TAO) is continuing its rally, inching close to breaking past $500.

In the news today:-

  • The US House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21), which will establish the necessary framework for regulating the digital asset space.
  • VanEck urges the Securities and Exchange Commission (SEC) to approve spot Ethereum ETF filings on a first-come, first-served basis. The SEC has established a precedent of approving all filings at the same time to eliminate the first mover advantage, which VanEck claims raises fairness concerns.

The Total Market Cap at a Key Support

The total crypto market capitalization is at $2.50 trillion, a key support floor that has also been tested in the past. The anticipation of the market is a bounce off this level, which could also be the case since inflows have surged in the past 24 hours.

For now, the next major resistance stands at $2.61 trillion, but the chances of TOTAL making it are very low. A bullish outcome will likely only see the total market cap breach $2.55 trillion.

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Total Market Cap Analysis. Source: TradingView

On the other hand, a slip below $2.50 trillion will result in a drawdown to $2.45 trillion, invalidating any bullish potential that TOTAL may have.

Bitcoin Might See Consolidation

Bitcoin’s price is presently trading at $69,500 after failing to breach the barrier at $71,800. BTC is currently noting crucial support at $68,500, and the chances of a drop to the same are high. But the cryptocurrency will not witness a fall below it.

Instead, Bitcoin’s price will probably remain rangebound between the aforementioned support and resistance levels. This consolidation will enable BTC to attempt a breach of the $71,800 resistance once again.

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Bitcoin Price Analysis. Source: TradingView

However, losing the support of $68,500 could create a situation where losses might ensue as the digital asset falls to $66,000 or lower.

Bittensor Faces a Barrier

Bittensor’s native token, TAO, is trading at $468 after noting a 30% rise in three days. This rise is pushing TAO towards the resistance at $500, which it attempted to close above and failed thrice in the past month.

Testing this line as support could change the course of TAO’s price action, potentially initiating recovery. This is because this level has seen multiple tests as resistance and support, with the latter resulting in an uptick in price.

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Bittensor Price Analysis. Source: TradingView

But if the breach fails, Bittensor will likely fall back to $418 or lower, potentially even dropping to $351. This price has seen tests as a support floor enough times to establish it as the critical support for TAO.