Since the rally on Feb. 8, the trend for Bitcoin (BTC) has been a slow and steady decline from $3,630 to $3,570. At this point, the support level is probably around $3,500-$3,550, with resistance in the $3,600-$3,700 range. Bitcoin (BTC) has tried to move upwards through the resistance level multiple times but has been pushed back each time.
It is possible that Bitcoin (BTC) could drop below the $3,500-$3,600 level, and that would become a resistance level. That is the level where CME Bitcoin futures traders likely took out short positions for February following the January expiration. Therefore, it is critical to watch whether Bitcoin (BTC) can stay at or above this level or the coming week or if it will drop below.
The bears are largely in control today, and the total crypto market cap has dropped about $1 billion to $120.5 billion. That being said, the total crypto market cap has been relatively steady in the $120 trillion to $122 billion range since the Feb. 8 rally, and there are no signs yet that this range is about to change.
Ethereum (ETH) is down 0.3 percent, Ripple (XRP) is down 0.6 percent, EOS is down 3.3 percent, Litecoin (LTC) is down 3.9 percent, Bitcoin Cash (BCH) is down 0.3 percent, Tron (TRX) is down 0.9 percent, Stellar (XLM) is down 1.6 percent, Binance Coin (BNB) is down 3.2 percent, Bitcoin SV (BSV) is down 1 percent, Cardano (ADA) is down 1.1 percent, IOTA (MIOTA) is down 1.6 percent, Dash (DASH) is down 2.3 percent, and Dogecoin (DOGE) is down 0.1 percent.
The only major cryptocurrency that is in the green today is Monero (XMR) with a 1.2 percent increase.
The total crypto market cap remains about 20 percent above the bear market low of $100 billion reached in mid-December. Looking at the long term chart, it can be seen that this is not much of a margin of safety, and it would not be out of the ordinary if the crypto market dropped 20 percent and retested the bear market lows. It is too soon to say that the crypto market bottom happened in mid-December, especially since rallies have not been gaining any steam in recent months and the overall market mood is still bearish.