Crypto Market Update

The total crypto market cap (TOTAL) and Bitcoin (BTC) saw a slight recovery today after hitting intra-day lows on Tuesday. Leading the charge was Aave (AAVE), which posted a 15% rise over the past 24 hours, emerging as the top-performing asset in the market.

In the news today:

• Reddit co-founder Alexis Ohanian has joined Project Liberty’s effort to acquire TikTok’s US operations. The company aims to integrate the platform with blockchain technology. As confirmed by Project Liberty founder Frank McCourt, Ohanian will serve as a strategic adviser, focusing on social media.
• El Salvador purchased five Bitcoins, with President Bukele stating future purchases are planned. However, a new IMF agreement restricts public sector BTC purchases, raising concerns about potential hidden clauses that could complicate the country’s financial situation and its $1.4 billion loan commitment.

The Crypto Market Pushes Back

The total crypto market cap gained $28 billion in the past day, rising from the intra-day low of $2.63 trillion on Tuesday. This recovery brought the market cap to $2.82 trillion, signaling some positive momentum for the crypto sector despite recent volatility.

As the market stabilizes, the total crypto market cap may attempt to breach the $2.93 trillion mark, setting the stage for further growth if positive sentiment continues.

Total Crypto Market Cap Analysis. Source: TradingView

However, if the bearish sentiment returns, the crypto market could see a decline. A drop below the $2.75 trillion support level could push the total market cap back toward $2.63 trillion, prolonging the current downtrend and intensifying losses.

Bitcoin Recovers to $87,000

Bitcoin’s price dropped by 5.48% during the intra-day lows on Tuesday, reaching a low of $81,500. However, the crypto king made a strong recovery and closed in the green. As of now, Bitcoin is trading at $87,179, showing resilience despite recent bearish pressure.

Bitcoin is aiming to secure $87,041 as support, which could enable it to breach the $89,800 resistance level. If the price successfully pushes past this barrier, it may continue to rise toward $92,005, marking a potential upward trend in the near future if current momentum holds.

Bitcoin Price Analysis. Source: TradingView

However, if Bitcoin fails to hold $87,041 as support, it could face a further decline. A drop below this level may push the price down to $85,000 or even lower, reaching $82,761. This would invalidate the bullish outlook and potentially extend the downtrend.

AAVE Aims To Reclaim Support

AAVE price surged by nearly 16% in the last 24 hours, trading at $210. The altcoin is now attempting to secure $198 as a support level. This recovery follows recent volatility, signaling the potential for further price movement if it can hold this level against bearish pressures.

After being stuck under the downtrend line for the past five weeks, AAVE’s only shot at breaking free is by bouncing off the $198 support. Successfully reclaiming $235 as support would confirm the bullish momentum, setting the stage for a continued rally and securing the gains made so far.

AAVE Price Analysis. Source: TradingView

However, if the prevailing downtrend continues to dominate the market, AAVE may struggle to maintain upward momentum. A drop below $198 would likely lead to a fall under $180, potentially testing the $167 support level. This scenario would invalidate the current bullish outlook for AAVE.