Why crypto market is down today? let’s find out!!
Trading is taking place near a significant horizontal and diagonal support level for the Total Crypto Market Cap (TOTAL CAP). A descending resistance line was crossed by the price of Bitcoin (BTC), while a rising support line was crossed by the price of TRON (TRX).
On January 5, some surprising crypto market news surfaced.
The New York attorney general accused Celsius’ CEO Alex Mashinsky of scamming 26,000 New Yorkers and filed a lawsuit against him. Mashinsky is accused of making fraudulent claims about Celsius’s safety as well as deceptive ones.
The co-founder of Three Arrows Capital (3AC), Kyle Davies, was also in the New York bankruptcy court. He was required to deliver the records necessary for 3AC access.
Then Vauld turned down an acquisition offer from the cryptocurrency finance company Nexo, citing issues with the latter’s liquidity. Finally, due to significant losses from the FTX bankruptcy, which resulted in a bank run and $8.1 billion in withdrawals, Silvergate Capital terminated 40% of its workforce.
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A Critical Level for TOTAL CAP
Between December 18 and December 30, the cryptocurrency market cap formed a double bottom pattern (green icons) inside the $752 billion support zone. The double bottom is regarded as a bullish pattern, which indicates that it typically results in upward advances.
Shortly after, the market capitalization of cryptocurrencies started to rise and on January 4 broke out of the $770 billion resistance level. It is currently in the process of being verified as support. An ascending support line that has been in place since December 30 also coincides with the area. Therefore, a breakdown from the intersection of these support levels would probably result in a swift decline in the direction of the $752 billion support region.
On the other side, if the bounce succeeds, an increase to $810 might come next. If it is successful, an increase toward the following resistance at $810 billion would be anticipated. However, a closure below the $770 billion region might start a slide down into the $752 billion support region.
Cryptocurrency market today 2023 and beyond
Since the introduction of Bitcoin in 2009, a lot has changed in the world of cryptocurrencies. With an increasing number of people and companies joining the crypto revolution, what was once a niche sector for IT aficionados has grown into a global phenomenon. The cryptocurrency market is more vibrant and varied than ever in 2023, with a wide variety of coins and tokens competing for market share. The quantity of news and information concerning cryptocurrencies is increasing along with their popularity. It can be challenging to stay on top of the most recent changes and trends in the cryptocurrency market given the abundance of information sources and the diversity of viewpoints. This blog post fills that need.
Now let’s analyze one of the biggest and most important cryptocurrencies Bitcoin.
Bitcoin Breaks Through Resistance
Since December 16, the price of Bitcoin hit the resistance line going beneath. Numerous rejections were prompted by the line, most recently on December 27. However, on December 30 the BTC price started to climb upward and on January 4 it burst over the line. It is now working to validate it as support. The next level of resistance, if the rising trend continues, would be between $17,323 and $17,574. The 0.5-0.618 Fib retracement resistance levels are what cause this. On the other side, if the ascending support line is broken, the price of BTC might fall as low as $16,300.
Live price click here
Note:
We always analyze Bitcoin because it is one of the major cryptocurrencies, and when the market value falls, other cryptocurrencies usually follow suit. Just remember to look after your crypto assets and keep an eye on the current bear market and the Federal Reserve. Since this is not a traditional investment, your capital is at risk. Many investors believe that, thanks to the previous fall, investing in crypto with high inflation may cause them to lose their cash.
Will crypto ever go back up again for investors?
Here we will list four factors to consider that highly influence the crypto market:
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Regulation-related developments: This chapter might cover the regulatory environment for cryptocurrencies, including any new laws or regulations passed in 2023.
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Technological developments: This section might discuss the most recent improvements in blockchain technology and how they are helping to enhance the cryptocurrency market.
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Market trends: This chapter could examine the trends that are propelling the cryptocurrency market, such as the rising adoption of cryptocurrencies by established businesses and the rise in institutional investors’ interest in the space.
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Risks and challenges: This chapter could discuss the risks and difficulties the cryptocurrency market is now facing, such as security breaches and market manipulation.
Regulation developments:
This chapter might cover the regulatory environment for cryptocurrencies, including any new laws or regulations passed in 2023. Numerous important regulatory changes that occurred in 2023 significantly affected the cryptocurrency sector. The Cryptocurrency Act of 2020, which categorizes various cryptocurrency types and establishes a clear legal framework for their use, is one of the most prominent of these. The Act has received widespread praise as a significant advancement for the sector since it gives firms and investors the certainty and stability they require.
Stricter anti-money laundering (AML) and know-your-customer (KYC) regulations for cryptocurrency exchanges and other organizations dealing in the crypto industry have been introduced in 2023, which is another significant regulatory move. Industry insiders have mostly hailed these regulations as a necessary step toward more widespread acceptance of cryptocurrencies. They are intended to prevent financial crime and protect consumers.
Technological progress
The introduction of Layer 2 solutions, which allow transactions to be completed off-chain without compromising security or decentralization, is one of the most optimistic developments in 2023. These technologies make it possible to execute more transactions more quickly while lowering transaction costs, enhancing scalability, and facilitating user-to-user transactions. The creation of sharding protocols, which enable blockchain networks to divide their data into smaller groups that may process transactions in parallel with better throughput, is another significant development in technology in 2023. This facilitates the scaling up of massive networks without compromising security or decentralization.
Market Trends
Note:
Trends change over time in every market, and the cryptocurrency market is no different.
The market has been shaped by a number of trends in 2023, some of which are certain to last while others might not. More people than ever before are investing in and trading in digital asset markets, thanks to the explosion in interest in cryptocurrencies that occurred in 2022. The market for cryptocurrencies has expanded quickly in recent years, and this pattern is anticipated to hold in the years to come. The worldwide cryptocurrency industry is anticipated to reach $3.067 trillion by 2027, rising at a CAGR of 11.3% over the course of the forecast year, according to a report by Fortune Business Insights.
The usage of smart contracts, expanding institutional investor interest, and the growing use of cryptocurrencies by traditional organizations are some of the factors cited in the research as being responsible for this growth. The report also points out that as the regulatory environment for cryptocurrencies becomes clearer and more predictable, it is fostering greater market confidence and wider use. The paper also identifies other obstacles the cryptocurrency market must overcome, such as market manipulation and security flaws. Despite these difficulties, the paper comes to the conclusion that the cryptocurrency sector has a promising long-term outlook and the potential for significant expansion in the years to come.
Risks and challenges
Despite the numerous beneficial changes that have occurred in the cryptocurrency industry recently, there are still some difficulties and dangers that must be considered. Security breaches will be the market’s top difficulty in 2023. It comes as no surprise that hackers and other cybercriminals have started focusing on the cryptocurrency industry given its rising popularity. The loss of millions of dollars worth of digital assets as a result of many high-profile security breaches at cryptocurrency exchanges and other firms in 2022. In addition to security problems, market manipulation is a concerning trend.
If you would like to know more we have an article that analyses the market trend for 2023
Is cryptocurrency likely to recover after the crash?
Yes, and we will list Reasons why Crypto Will Recover in 2023
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In the past, there have been significant drops in the cryptocurrency market.
The most well-known cryptocurrency and the one with the greatest market cap, bitcoin, has seen substantial bear markets and drops because of its highly volatile. On November 30, 2013, the price of bitcoin increased to almost $1,160. After that, it saw a major price decline that lasted for more than a year, and by January 2015, 1 BTC was trading for $150. The price of BTC surpassed the previous high set in 2013 in 2017, and the same year it also reached a new top at over $19,600. The price of Bitcoin had already fallen to as low as $3,100 by December 2018.
The price burst above the resistance created in 2017 in December 2020, creating new highs until it reached $68,000 in November 2021. Since then, the market has experienced huge declines, which have been accompanied by a considerably more pessimistic mood as a result of people becoming more invested in the cryptocurrency market.
Note:
The current situation is just a matter of history repeating itself, according to the price history of Bitcoin, and we anticipate a recovery in the price starting in 2023.
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Every Bitcoin Bear Market Has Been Followed By a Long Bull Run
The cryptocurrency market is quite volatile, and huge price decreases are followed by a major surge in price. You’ll also see that the bull markets that follow bear markets also have lengthy bull rallies that eventually overcome the obstacle set by the market’s prior peak price.
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Increasing Use of Blockchain and Crypto investors
Compared to previous years, there are more cryptocurrency initiatives and users today. Consider how cryptocurrencies are eliminating the need for middlemen in the gaming sector by eliminating the usage of debit and credit cards for payment. Thanks to blockchain and cryptocurrency technology, gamers can also earn bitcoin incentives while participating in games. It is clear that use cases for cryptocurrencies and blockchain technology have grown and are now more widely recognized than they were a few years ago. For these reasons, a gradual recovery is anticipated in 2023, and the bear market is not anticipated to last for very long.
Which crypto is most likely to survive?
Here we created multiple articles that explain which projects and crypto we are bullish about for 2023.
14 Best DeFi Coins to Buy in 2023
Top 10 DeFi Platforms That are Preferred by Investors
12 best cheapest crypto to buy with potential
The Best Web 3.0 Cryptos to buy for the future
Conclusion
The recent bankruptcies and inflation brought some concerns to some crypto clients. Unfortunately, in 2022 many platforms, digital currencies, and businesses were stolen assets creating panic, and many dollars were lost. You can survive the ongoing crypto winter by being patient and playing the long game. Expect it to take a while for your money to be fully recovered because it takes time for the market price to increase. During bad markets, many spot traders lose a lot of money, but the persistent ones eventually make some, or even all, of it back. Your emotions and judgment can be controlled by exercising patience and discipline.
But will cryptocurrency grow in 2023? Anyone’s assumption.
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Disclaimer. Cryptonewsmart does not endorse any content or product on this page. While we aim at providing you with all the important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered investment advice.
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