Why Are Cryptocurrency Prices in a Slump Today?

Crypto News– The Bitcoin (BTC) price, Crypto Market Cap (TOTALCAP), and ImmutableX (IMX) experienced a decline yesterday amidst a market-wide correction. The overall value of TOTALCAP had been following an ascending support trend line (black) since September 11, with intensified upward momentum marked by a steeper ascending support trend line (white) on October 11.

Why Are Cryptocurrency Prices in a Slump Today?

Further steepening occurred on October 18, as TOTALCAP established an even steeper trend line (yellow). Despite reaching a new yearly high of $1.40 trillion on November 13, TOTALCAP has since fallen, forming an ascending wedge, typically considered a bearish pattern.

Yesterday, TOTALCAP broke down from the ascending wedge, signaling the completion of the final phase of the upward movement. If the decline persists, there’s potential for a 7% decrease, bringing it to the next ascending support trend line (white), coinciding with the $1.24 trillion support area.

Breakout Momentum in Bitcoin Fizzles Out

On November 9, the price of BTC successfully broke out from a descending wedge, achieving a new yearly high of $37,978. However, the momentum of this upward movement proved unsustainable.

Instead, the BTC price retreated within the boundaries of the wedge yesterday, rebounding at its support trend line. Should the BTC price experience a breakdown from the wedge, there is a potential 7% decline looming, testing the next nearest support area at $33,000.

ImmutableX (IMX) Faces Rejection at Upper Range

ImmutableX (IMX) has been fluctuating within the $0.50 to $1.25 range since April, with both the range high and range low repeatedly validated.

Starting on November 9, IMX initiated an upward movement, reaching the range high yesterday. However, it faced rejection (red icon) and has since experienced a decline.

If the downward trend persists, IMX may see a 25% decrease, testing the range low at $0.80. Conversely, a breakthrough above the $1.25 area could potentially trigger a 40% increase, targeting the next resistance level at $1.60.