The crypto market has extended its downward trend today as the US government shutdown impasse looks set to stretch into a third week.
Total cryptocurrency market capitalization (TOTAL) is down 0.11% over the past 24 hours, reflecting broad market weakness. Leading coin Bitcoin (BTC) has posted a modest 0.41% decline, while Solana-based DoubleZero (2Z) emerges as the day’s top loser.
In the news today:
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Sellers Dominate as Crypto Market Risks Deeper Correction
The total crypto market capitalization has dropped by $4.34 billion over the past 24 hours. TOTAL currently sits at a key support floor of $4.08 trillion, a crucial level that could determine the market’s next direction.
Readings from the daily chart continue to tilt toward bearish sentiment, signaling that downside risks remain elevated. At press time, TOTAL’s Balance of Power (BoP), which measures the strength of buyers versus sellers in a given market over a specific period, is below zero at -0.22 at press time.
When an asset’s BoP is negative like this, it suggests that sellers have more control over the market, hinting at the likelihood of a possible breach of the $4.08 trillion support level. A break below this line could push TOTAL towards $3.94 trillion.
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On the other hand, if market sentiment improves and buying returns, TOTAL could gain strength and attempt to reclaim its all-time high of $4.27 trillion.
Bitcoin Holds the Line at $120,000, But Bulls Need $123,000 to Regain Control
Leading coin BTC has extended its price dip by another day, also down by a modest 1% dip over the past day. At press time, the crypto asset trades at $121,351, hanging above the support formed at $120,144.
A continued uptick in sell-side pressure could cause the coin to test this key support level. Should the bears fail to defend it, it could give way and open BTC’s price to deeper declines toward $115,892.
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However, a resurgence in new demand for the king coin could invalidate this bearish outlook. In that scenario, BTC’s price could gain momentum and attempt to revisit its all-time high of $125,761.
But for this to happen, the coin must first climb above $123,731.
2Z Price Collapses to All-Time Low
Solana-based altcoin 2Z’s price has dropped 17% in the past 24 hours to rank as the altcoin with the most losses during that period. It currently trades near its all-time low of $0.3259, with its key momentum indicator hinting at new lows.
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At press time, 2Z’s Chaikin Money Flow (CMF) is at -0.33 and continues to trend lower. The CMF indicator measures the flow of capital into and out of an asset.
When the CMF value is positive, it indicates that buying pressure dominates, suggesting that capital is flowing into the asset. However, a negative CMF reading, such as the one observed for 2Z, signals that selling pressure is stronger and that money is leaving the market.
If this decline in demand persists, 2Z’s price could plunge to new lows below its current support zone.
Conversely, a renewed uptick in buyer activity could spark a short-term rebound, pushing 2Z’s price toward the $0.5012 level.
