Coin World News Report:
As a result of traders’ reaction to the growing greed in the market and fear of a pullback, the total market value of cryptocurrencies has fallen by $22 billion to $2.26 trillion.
The price of Bitcoin dropped by 1% to $67,134, with the RSI declining, indicating a weakening buying pressure and the possibility of further price decline.
Due to increased selling pressure, ApeCoin has dropped by 15%, giving back the recent gains.
The continuous decline in market activity is evident in the 24-hour decrease in the total market value of cryptocurrencies (TOTAL). The leading cryptocurrency, Bitcoin (BTC), also reflects this trend with a 1% price drop. Additionally, intensified profit-taking has led to a double-digit decline in the value of ApeCoin (APE).
“Greed” causes hesitation, further decline in Total market activity in the cryptocurrency market. In the past 24 hours, the total market value of cryptocurrencies has fallen by $22 billion, reaching $2.26 trillion at the time of writing.
The Fear and Greed Index of cryptocurrencies shows a high level of market greed, leading to the decline in market value. Although this is typically a bullish indicator, it may also trigger caution in some traders who are concerned about an imminent market correction, leading to reduced trading. Some traders may view high greed levels as a warning signal of an overheated and vulnerable market, causing them to adopt a wait-and-see attitude.
Dowdall’s current market value is $2.26 trillion, slightly above the support level of $2.20 trillion. If market participants become increasingly cautious and trading volume continues to decline, Dowdall may fall to this support line. If this level is not held, Dowdall may drop to $2.08 trillion.
If traders become less cautious, trading activity picks up, and Dowdall may attempt to break through the resistance level of $2.32 trillion. Successfully breaking through this level would pave the way for Dowdall to rise to $2.5 trillion, the highest level since June.
Bitcoin sell-off activity gradually increases
The current trading price of Bitcoin is $67,134, a 1% decrease in value in the past 24 hours. The downward trend of the Relative Strength Index (RSI) confirms the increasing selling pressure in the market.
This indicator measures the overbought and oversold market conditions of assets. As of the time of writing, BTC’s RSI is 60.22.
This RSI reading typically indicates a bullish trend, but the downward trajectory suggests that buying pressure may be weakening. Traders may interpret this as a potential signal of an impending shift or correction, especially as the RSI continues to decline.
If buying pressure continues to weaken, the price of Bitcoin may retest the support level of $64,321. If this level is not held, it could trigger a decline, pushing the price to the next key support level of $61,388.
However, a recovery in buying activity would invalidate this bearish outlook. If Bitcoin experiences strong accumulation, it may challenge the key resistance level of $68,474 and potentially lay the foundation for a rebound to $73,777.
ApeCoin starts giving back gains
After the launch of ApeChain, the price of APE increased by 100%, but then began to give back some of the recent gains. At the time of writing, the trading price of this altcoin is $1.28, a 15% decrease in the past 24 hours.
The Balance of Power (BoP) of the token confirms the increasing selling pressure. This indicator measures the strength of buyers and sellers in the market, and as of the time of writing, it is -0.81. A negative BoP indicates that sellers are in control and attempting to push down the asset price.
If this trend continues, the price of APE may drop to the low point of $0.47 on August 5th. On the other hand, if buying activity returns to the market, the altcoin may attempt to rebound to $1.84, invalidating the current bearish argument.
