What is causing the overall crypto market cap to fall
The drop in the overall market value of cryptocurrencies on Thursday can be attributed to a number of potential factors.
First, there’s the bearish close of the S&P 500 ( SPX ), which fell 0.33%. This continued the decline that has been going on since August 15, which has seen the index fall by 17.50%.
Due to the almost perfect correlation (blue) between the SPX and Bitcoin, a drop in the former usually causes a drop in the latter.
A more important factor may be the consumer price index (CPI), which came in at 8.20%, slightly higher than the expected rate of 8.10%.
It is possible that this will be the catalyst for a further rise in interest rates, thus leading to investor panic. However, it is worth noting that the rate was lower than the previous CPI reading of 8.30%.
The Bitcoin price is performing as poorly as the rest of the market
With a 3.8% drop, the cryptocurrency market capitalization has fallen in line with the rest of the market. While the price initially touched a low of $18,190, it bounced shortly thereafter and is currently trading at $18,430. Measured from today’s opening, the price has decreased by 3.85%.
The daily RSI is bearish, as it has broken down from a rising support line (green) and is below 50. This reading supports the continuation of the downward movement.
As the price is about to break down from the support area of $18,850, the next support will be at the support line of the current wedge pattern at $17,000.
If the BTC price reaches this area, it will reach a new yearly low, as the current low is at $17,622 (green icon).
Huobi Token Price Increases Despite Market Correction
The HT price has increased by 76% in the last four days, and has an extremely negative correlation to the rest of the market. The price reached a high of $7.67 before being rejected (red icon).
The rejection occurred when the Huobi Token price reached the horizontal area of $7.20, which is a crucial level that had previously served as support for a year.
Since the price increase occurred shortly after Huobi Global announced that a buyout firm from About Capital Management has purchased a majority stake in the company, it is possible that there is optimism surrounding the deal and the future potential of the company and its new ownership.
For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here
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