The Current Scenario: Recently, the cryptocurrency landscape has experienced a downturn, with 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 seen a significant drop. Major exchanges like Binance and OKX have also adjusted their crypto operations to comply with the UK Financial Conduct Authority’s (FCA) guidelines.
Crypto Market Cap’s Bearish Turn: After bouncing back from the $1 trillion support level on September 11, the crypto market cap showed an upward trend, breaking free from a descending resistance trendline by September 18. However, a minor price dip on September 25 highlighted the importance of the trendline. Nevertheless, the momentum continued, pushing TOTALCAP to a high of $1.10 trillion on 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, the market cap may approach the $1 trillion support level, which is 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 broke its descending resistance trendline around September 28, reaching a high of $28,580 shortly after. However, a subsequent decline indicated strong selling pressure, deviating above the crucial $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 price trajectory has been 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 price. On the other hand, a bullish resurgence could propel it by 25%, targeting the $12.30 resistance level.