The total crypto market cap (TOTAL) fell by more than $196 billion, along with Bitcoin (BTC), which is traded at $103,500. Rising tensions in the Middle East are impacting global stock markets as Israel struck Iran on Friday. Among the altcoins, Ethena (ENA) emerged as the biggest loser, falling by 18%.
In the news today:-
- Ripple and the SEC have filed another motion to resolve their legal battle over the right to sell securities. Legal experts doubt the motion will succeed, and if denied again, Ripple may have to accept a ban on selling securities to retail investors.
- Brazil has introduced a new crypto tax policy under Provisional Measure No. 1303, imposing a 17.5% tax on all crypto profits. This change reduces the tax burden on large investors, while previously, small traders were exempt or paid up to 22%.
The Crypto Market Crashes
The total crypto market cap has fallen by $196 billion, now standing at $3.17 trillion. Despite this, the market is holding above the critical support level of $3.16 trillion. A bearish trend is present, but if conditions improve, the market could recover above this support level.
The drawdown is the result of Israel targeting Iran’s nuclear and military targets and launching attacks on the country. Global financial markets suffered and will likely continue to do so heading into the weekend.
If the market drawdown continues, the total crypto market cap could fall below the $3.16 trillion support level. In this case, the next support level lies at $3.09 trillion. However, if the situation stabilizes, a recovery above $3.16 trillion could push the market toward $3.21 trillion, restoring investor confidence.
Bitcoin Falls Below $105,000
Bitcoin is down 4.7% today, trading at $103,519, after losing the crucial $105,000 support level. The cryptocurrency king is now testing the next support at $102,734. This downturn is a result of weakening market sentiment, indicating potential further downside if the bearish momentum continues in the coming days.
The Relative Strength Index (RSI) slipping below the neutral mark signals a strengthening bearish momentum for Bitcoin. This could push BTC below the $102,734 support, with the next major level at $100,000. If this occurs, it would mark a continuation of the current downtrend for the digital asset.
However, if the bearish pressures subside within the next 24 hours, Bitcoin could rebound off the $102,734 support level. This recovery would allow Bitcoin to retest the $105,000 resistance, invalidating the bearish outlook.
Ethena Investors Face Losses
ENA experienced a sharp 18% drop over the past 24 hours, trading at $0.282. This decline has pushed the altcoin to test the support level of $0.273. If the selling pressure persists, ENA could struggle to hold this support, leaving the altcoin vulnerable to further downside in the short term.
The challenge for ENA now lies with investors whose losses are increasing. If the altcoin fails to maintain its $0.273 support, a further drop to $0.262 is likely. Such a move could signal a prolonged downtrend, with bearish sentiment growing among market participants if the losses continue to mount.
However, if ENA successfully bounces off the $0.273 support, it could trigger a potential recovery. Strong investor support would be key to this rebound, allowing the altcoin to rise towards $0.315. Breaching this level would signal the invalidation of the current bearish trend.
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