Why Is Crypto Down Today – January 19

why is crypto down today – January 19

Crypto News – The total cryptocurrency market capitalization (TOTALCAP) had been trading within an ascending parallel channel since December 2023, a pattern often associated with corrective movements. However, on January 11, the price faced rejection at the channel’s resistance trend line (indicated by the red icon) and has been on a downward trajectory since then. Notably, TOTALCAP broke down from the channel’s support trend line recently.

This breakdown coincided with a crucial long-term horizontal and Fibonacci support level at $1.61 trillion, which TOTALCAP closed below. If the downtrend persists, TOTALCAP may experience a further 12.60% decline, reaching the nearest support level at $1.40 trillion.

Despite this bearish outlook for TOTALCAP, a potential reversal could occur if it manages to reclaim the $1.61 trillion area and the support trend line of the channel. Such a move could spark a significant 33% increase, targeting the next resistance at $2.10 trillion.

Bitcoin’s Decline Following Channel Breakdown

Similar to TOTALCAP, the price of Bitcoin (BTC) had been trading within an ascending parallel channel since December. However, on January 12, 2024, BTC broke down from this channel, signaling the end of the previous upward trend. After being rejected at the channel’s support trend line on January 16, BTC resumed its downward movement and reached a low of $40,705.

If the current downtrend persists, BTC might see a 9% decline, finding support around the $38,000 mark. Despite this bearish near-term projection, a potential bullish reversal could occur if BTC manages to reclaim the support trend line within the channel. This reversal could potentially lead to an impressive 136% increase, targeting the channel’s resistance trend line at $48,250.

SUI’s Decline Before Achieving an All-Time High

The price of SUI has experienced a rapid increase since the beginning of the year, reaching a peak of $1.45 on January 15. However, SUI encountered resistance around the $1.40 area and subsequently declined. Notably, this rejection occurred just before SUI could establish a new all-time high.

If the ongoing decline persists, SUI may experience a 20% drop, reaching the nearest support level at $0.90. Despite this bearish short-term outlook for SUI, there is potential for a bullish scenario if a strong bounce occurs at the current level. Such a bounce could lead to a 23% increase, aiming for the next resistance level at $1.40.