Why Are Crypto Prices Falling Today?

Crypto News- Crypto Prices Falling Today; Over the past days, the total market capitalization of cryptocurrencies (TOTALCAP) and the price of Bitcoin (BTC) have both undergone declines, starting from October 2. Additionally, Avalanche (AVAX) achieved its peak on October 7 but has since experienced a notable decrease in its value.

Why Are Crypto Prices Falling Today?

Regulatory Compliance Changes by Binance and OKX:

The cryptocurrency industry has undergone significant transformations as Binance and OKX have restructured their operations to align with the regulatory framework established by the UK Financial Conduct Authority (FCA).

After rebounding from a critical support level at $1 trillion on September 11, the overall cryptocurrency market capitalization showed a consistent upward trend. This upward momentum culminated in a breakout from a descending resistance trendline on September 18.

On September 25, a brief dip in prices reaffirmed the significance of this trendline, marked by a green icon. Subsequently, TOTALCAP continued to ascend, reaching its peak at $1.10 trillion on October 2. However, on the same day, a bearish candlestick pattern emerged, indicated by a red icon, initiating a downward trajectory.

Comparing the October 2 peak to the earlier high observed on August 29, we can identify a deviation, illustrated by the red line, followed by a decrease. Historically, such deviations have often signaled significant price reversals. If this downward trend persists, the $1 trillion support zone would be approximately 7% below the current price. Conversely, a 5% increase would be necessary to reach the next resistance level at $1.13 trillion.

Bitcoin’s Decline Following Deviation:

In a similar vein, Bitcoin’s price broke free from a descending resistance trendline on September 28, surging to a high of $28,580 four days later. This high slightly exceeded the peak observed on August 29. However, the price subsequently experienced a decline, forming a long upper wick, which is indicative of selling pressure. This development also resulted in a deviation above the $28,000 resistance zone, denoted by the red line.

Presently, the BTC price is making efforts to breach the $28,000 resistance level. A successful breakout could potentially lead to a 6% increase, reaching $29,500. Conversely, a rejection could trigger a 5% decline, with the price retracing to the descending resistance trendline, around $26,000.

AVAX’s Upper Wick and Subsequent Decline:

On September 25, the AVAX price broke free from a descending resistance trendline, accelerating its upward trajectory, ultimately reaching a high of $11.88 on October 7.

However, this impressive surge was short-lived, as the price quickly formed a substantial upper wick, as indicated by a red icon, and has since been on a downward trend. If this decline continues, the nearest support area can be found at $9.20, representing an 8% decrease from the current price. Conversely, a renewed upward momentum could result in a 25% increase, targeting the $12.30 resistance area.