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The total crypto market cap (TOTAL) and Bitcoin (BTC) registered the third largest single-day fall of the month. As the market corrected, it took down altcoins, led by SUI, which fell 13% in 24 hours.
In the news today:
- The SEC has frozen Jonathan and Tanner Adam’s assets. It accuses them of running a $60 million Ponzi scheme disguised as a crypto trading bot and defrauding over 80 investors. The SEC is pursuing legal actions, including injunctions, disgorgement, and penalties.
- The TON blockchain has been halted for the last six hours and failed to process transactions. A sudden increase in DOGS transactions has overloaded the network.
The Crypto Market Dips Again
The total crypto market cap dropped by 5.3% in the last 24 hours, wiping out more than $114 billion and resulting in $313 million in overall liquidations. Currently standing at $2.04 trillion, TOTAL is back in consolidation under the $2.11 trillion resistance.
The speculated reason behind this drawdown has been extreme greed among investors. An extreme surge in the Bitcoin funding rate on dYdX over the last few days showcases intense greed among investors. Historically, this has been the driving factor of a price drop.
Read More: 11 Cryptos To Add To Your Portfolio Before Altcoin Season
TOTAL, as a result of this decline, could test $2.00 trillion as the next crucial support line. This level would create a lower consolidation limit of under $2.11 trillion.
Bitcoin’s Price Loses Key Support
Bitcoin’s price, trading at $59.540 at the time of writing, fell below $60,000. This 5.4% drop also led to BTC losing the critical support level of $61,700, leaving Bitcoin vulnerable to a drop to $58,200.
Since the latter has been tested multiple times in the past, it could enable a bounce back for BTC. Once $61,700 is reclaimed as support, the crypto king could be back on its path of recovery.
Read more: Bitcoin Halving History: Everything You Need To Know
But if the support of $58,200 is lost, BTC could slip to test $55,000 as the next floor, slowing down Bitcoin’s potential recovery.
SUI Repeats History
SUI price fell by a little over 13% from Tuesday’s intra-day high of $0.98, trading at $0.83 at the time of writing. The broader market correction resulted in the crypto asset losing the critical support of $0.89.
Falling below it has resulted in this price level becoming a barrier for SUI. In the past, the altcoin has struggled to secure a recovery above this line, and a repeat could keep SUI consolidated under $0.89.
Read More: Everything You Need to Know About the Sui Blockchain
Nevertheless, if the investors exhibit demand and push the price back up, a recovery could flip $0.89 into support again. A bounce off this level would invalidate the bearish thesis.