Bitcoin Breaks Critical Support as Market Remains Under Threat
A strongly bearish development occurred.
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The cryptocurrency market is under heavy downside pressure on Tuesday after Bitcoin broke through major technical support during Monday’s U.S. trading session.
Ethereum, XRP, Litecoin are mostly following Bitcoin, while Binance Coin, Bitcoin Cash, EOS, Bitcoin SV, and TRON are among the worst affected top-10 coins.
The total cryptocurrency market capitalization is $214 billion, a loss of 5.7 percent since Sunday.
Bitcoin has come under heavy technical selling pressure after invalidating a bullish falling wedge breakout on the higher time frames that had been in play since October 25th.
BTC should remain under heavy technical selling pressure while trading below the top of the wedge pattern, at $8,250.
The current monthly low for BTC is located at the $8,030 level. A fall below this support could provoke the next wave of technical selling towards the $7,550 level.
The Crypto Fear & Greed Index, an alternative measure of market sentiment, has fallen to 32. That is six points lower than yesterday, and its lowest reading in three weeks.
BTC/USD By TradingView
Total Market Capitalization
The daily time frame chart of the total market capitalization is also showing the presence of a falling wedge pattern.
Sellers have tested the top of the pattern, at $210 billion, during yesterday’s decline and failed to break back inside the wedge.
The market appears to be at a critical juncture. A break under the wedge pattern similar to BTC would be extremely bearish from a technical perspective.
Crypto Total Market Cap by TradingView
According to the latest data from The Tie, sentiment toward the entire cryptocurrency market has fallen to 43.9 percent.
Binance Coin has the weakest sentiment among the top-10 cryptocurrencies at 33.4 percent. Meanwhile, EOS has the strongest at 55 percent.