Why the Crypto Market Is Down Today

The crypto market cap (TOTALCAP) and the Bitcoin (BTC) price have been downward since October 2. Ocean Protocol (OCEAN) has returned to a 120-day horizontal support area.

The Binance exchange and its CEO Changpeng Zhao (CZ) are facing harsh allegations in Brazil regarding transactions that total $791.7 million. Also, a congress committee has accused Binance of being utilized in a pyramid scheme.

TOTALCAP Falls After Bearish Candlestick

TOTALCAP has increased since September 11, when it bounced at the $1 trillion horizontal support area. The increase caused a breakout from a descending resistance trendline seven days later.

On September 25, the price returned and validated the trendline as support (green icon). The ensuing bounce led to a high of $1.10 trillion on October 2.

But TOTALCAP has fallen since, creating a bearish candlestick pattern (red icon) in the process. The rate of decrease accelerated on October 7, and the price has created five consecutive bearish candlesticks since then.

If the decrease continues, TOTALCAP can fall by another 4% and reach the $1 trillion horizontal support area.

On the other hand, a sudden bounce and creation of a bullish, engulfing candlestick can lead to a 9% increase to the $1.13 trillion resistance area. Currently, there are no signs that this will be the case.

Bitcoin Fails to Sustain Increase

The BTC price also broke out from a descending resistance trendline on September 28. After four days, it reached a high of $28,580 (red icon). This was slightly above the August 29 high.

The ensuing decrease confirmed the deviation above the $28,000 resistance area. After the deviation, BTC validated the $28,000 area as resistance again and has decreased since.

If Bitcoin continues falling, it will decrease by another 4% and reach the descending resistance trendline at $26,000.

Despite this bearish Bitcoin prediction, an increase above $28,000 will mean that the trend is bullish and lead to a 10% upward movement towards $29,800.

OCEAN Price Reaches Long-Term Support

The OCEAN price has traded above the $0.28 horizontal support area since June. During this time, the price has bounced several times (green icons), creating long lower wicks.

However, each bounce was weaker than the last, signifying that bulls were losing power. The lower highs create a descending trendline and a descending triangle, considered a bearish pattern.

A breakdown that travels the entire triangle’s height (black arrow) would take the OCEAN price to the next support at $0.15. This would be a decrease of 48%.

Despite this bearish OCEAN prediction, a strong bounce at the $0.27 horizontal support area can lead to a 12% increase toward the descending resistance trendline, which is currently at $0.31.

For BeInCrypto’s latest crypto market analysis, click here.