Why Is the Crypto Market Down on October 31st?

Why Is the Crypto Market Down on October 31st?

Crypto News – The Bitcoin (BTC) price and the Crypto Market Cap (TOTALCAP) have encountered significant challenges following their respective yearly highs. Render (RNDR) faced a setback before achieving a new annual peak.

Binance CEO Changpeng Zhao articulated his belief that fiat currency would continue to hold a crucial role within the financial sector’s future landscape. Moreover, there is speculation that the Chicago Mercantile Exchange (CME) might surpass Binance in terms of Bitcoin (BTC) futures open interest, a perspective put forth by VanEck.

Anticipation Surrounding TOTALCAP’s Breakout

TOTALCAP exhibited notable growth since October 12, culminating in a yearly high of $1.27 trillion on October 24. However, the price subsequently retraced beneath the $1.25 trillion resistance threshold, confirming its role as a formidable barrier.

The significance of the $1.25 trillion level lies in its prolonged presence since April, making it a pivotal determinant for the market’s future trajectory. Although TOTALCAP recorded its highest weekly close of the year at $1.25 trillion recently, it has once again dipped below the $1.25 trillion resistance mark.

Should TOTALCAP experience a breakout, it could potentially surge by 16%, setting its sights on the subsequent resistance level at $1.44 trillion. Despite this optimistic scenario, a rejection from the $1.25 trillion resistance could lead to a 13% decline, potentially falling to the $1.10 trillion support zone.

Bitcoin’s Ascending Triangle Formation

BTC’s price has been confined within an ascending triangle pattern since achieving an annual high of $35,198 on October 24. The ascending triangle is typically perceived as a bullish indicator, implying that a breakout to the upside is the more probable outcome.

Nonetheless, despite the bullish pattern, BTC’s price currently teeters on the edge of its support trendline, increasing the risk of a breakdown. A breach of this trendline could result in a 6% decline, with the closest support standing at $31,900. Conversely, should the breakout materialize, a 7% increase, targeting $36,500, can be projected by measuring the triangle’s height to the breakout point.

RNDR’s Price Retreat Preceding a New Yearly High

RNDR’s price had previously broken free from a descending resistance trendline in September, allowing it to recapture the $1.80 and $2.30 horizontal resistance levels. Despite this upward momentum, the price fell short of attaining a new yearly high, peaking at $2.68, just shy of the primary resistance area at $2.80, before experiencing a decline.

In the event of a price drop below the $2.30 level, a 25% reduction could ensue, potentially leading to a descent to the next support at $1.80. Conversely, a rebound at the $2.30 support could trigger a 20% upswing, targeting the nearest resistance level at $2.80.