At the time of writing, the king cryptocurrency was at the level of 42,445 dollars and had rapidly fallen to 40,400 dollars about 8 hours earlier. A few days ago, we had mentioned a cryptocurrency bill targeted by senators as a means of financing terrorism. Apart from that, there was no major event that triggered the decline in the markets, but we had indicated that there could be profit sales after the Fed week.
The markets experienced a drop ahead of the new inflation data, fearing bad data might surface on Friday. The total value of cryptocurrencies (TOTALCAP) increased rapidly since October, creating rising candlesticks for eight consecutive weeks, and the peak that reached 1.63 trillion dollars was very close to the 1.60 trillion dollar resistance levels.
If the total value can break the resistance of 1.6 trillion dollars, it could rise up to 1.87 trillion dollars. Otherwise, we could follow a devastating decline process down to 1.25 trillion dollars.
Bitcoin (BTC) underwent a similar process to the total value graph of cryptocurrencies. The annual ATH level was realized above the resistance zone of 42,450 dollars. Despite the rise, BTC could not continue its ascent this week, and the expected pullback was triggered towards this area.
Whether closures are made above the resistance zone will determine the direction of the trend. This week will be intense, but the bulls need to reclaim the resistance zone and make closures above it. At the time of writing, the price was exactly at the resistance zone.