The Current Scenario: The cryptocurrency landscape has recently experienced a downturn, with both the overall crypto market capitalization (TOTALCAP) and Bitcoin’s (BTC) price declining since the beginning of October. Avalanche (AVAX) reached its peak on October 7 but has since experienced a significant drop. Major exchanges such as Binance and OKX have also adjusted their crypto operations to comply with the guidelines of the UK Financial Conduct Authority (FCA).
Crypto Market Cap’s Bearish Turn: After recovering from the $1 trillion support level on September 11, the crypto market cap showed a promising uptrend, breaking free from a descending resistance trendline by September 18. A minor price dip on September 25 emphasized the significance of the trendline. However, the momentum continued, pushing TOTALCAP to a high of $1.10 trillion by October 2. But a bearish candlestick pattern emerged on the same day, indicating a potential price reversal. Comparing this peak with the high on August 29, it is clear that such deviations often suggest significant price shifts.
If the bearish trend continues, we may see the market cap approach the $1 trillion support, approximately 7% below the current level. Conversely, a surge of about 5% would target the next resistance at $1.13 trillion.
Bitcoin’s Downward Drift: Bitcoin also managed to break its descending resistance trendline around September 28, reaching an impressive $28,580 shortly after. This peak was slightly higher than its value at the end of August. However, a subsequent decline indicated strong selling pressure, deviating above the critical $28,000 resistance zone. Currently, Bitcoin is striving to surpass this resistance.
If Bitcoin succeeds, we may witness a 6% rally towards $29,500. But a setback could drag it down by 5%, aligning with the descending resistance trendline near $26,000.
AVAX’s Volatile Journey: Avalanche’s (AVAX) price trajectory has been quite eventful. After breaking its descending resistance trendline on September 25, it soared to $11.88 by October 7. However, this surge was short-lived, and a subsequent decline followed.
If this bearish trend continues, AVAX may find support around $9.20, which is 8% below its current level. Alternatively, a bullish resurgence could propel it by 25%, targeting the $12.30 resistance.
