The cryptocurrency market is reeling from a sharp sell-off

The cryptocurrency market is reeling from a sharp sell-off, with the total crypto market cap plunging toward $2.79 trillion

The cryptocurrency market is heating up as the total crypto market cap edges closer towards $2.79 trillion, marking a 2.9% decrease in just 24 hours. The sell-off has been driven by regulatory fears, profit-taking, and broader economic uncertainty, leaving the market at a crucial inflection point.

As the dust settles, Bitcoin (BTC) is bearing the brunt of the sell-off, testing critical support at $80,000. Meanwhile, Ethereum (ETH) struggles to stay above $1,756 as buyers remain hesitant to step in. In the Solana (SOL) realm, the price is now dangerously close to sliding below $124, opening the door for further downside potential.

Bitcoin (BTC) Price Analysis: BTC Teeters On $80K Test

Bitcoin is on the verge of a breakdown as it trades at $81,921, showing a 1.5% decrease in the past day. After failing to sustain momentum above $91,252, Bitcoin now stands at a crucial support level of $80,000. A breach below this point could invite a deeper correction with the next relevant support zone visible at $68,080.

The lower time frames highlight the potential for a steeper decline. A glance at the 4-hour chart reveals that Bitcoin's price action is currently unfolding within a descending wedge pattern. This technical indicator typically signals an impending breakout or breakdown.

If Bitcoin manages to reclaim the $91,000 level, it could spark a rally, leading to a recovery in the broader crypto market. However, if the sell-off continues at the current pace, we might witness a steeper correction across the board.

The crypto market is currently at a breaking point. If the crucial support levels give way, we could see a full-scale retracement. But if the buyers decide to step in, we might witness a powerful recovery rally. As we move forward, we can expect volatility to remain high as uncertainty hangs over the market.

If the crucial support level at $68,080 is breached, it might herald a substantial decline in Bitcoin's value. This could propel the cryptocurrency towards the Fib. support zone, which ranges from $54,000 to $50,000.

On the other hand, if the buyers manage to intervene and if there is a rebound from the current support zone, it could set the stage for a rally towards the Fib. level at $100,000 or even higher towards the 1.272 Fib. at around $124,000.

The potential for a deeper correction stems from the fact that Bitcoin's price action is unfolding within a descending wedge pattern on the 4-hour chart. This technical indicator typically signals an impending breakout or breakdown.

The apex of the wedge is already in sight, and if the price breaks down, it could set the stage for a steeper decline towards the Fib. support zone. However, if the buyers manage to step in and if the lower time frames begin to show signs of a reversal, it might herald a potential scenario where the apex of the wedge acts as support.

In this case, we might see a scenario where the 4-hour time frame shows signs of a bullish divergence in the Relative Strength Index (RSI) as the price breaks out of the wedge pattern. This could trigger a recovery rally towards the Fib. level at $100,000 or even higher towards the 1.272 Fib. at around $124,000.

The market is at a crucial inflection point, and the next few days will be critical for determining the fate of the crypto market.

As the cryptocurrency market continues to heat up, traders and investors are keeping a close eye on any new developments that could impact the price of Bitcoin (BTC) and other major cryptocurrencies.

One recent report from Benzinga has highlighted the possibility of a steeper correction in the crypto market if the crucial support levels give way. This could lead to a full-scale retracement, or we might see the buyers step in, setting the stage for a powerful recovery rally.

The report also notes that the total crypto market cap has decreased by 2.9% in the last 24 hours, reaching $2.79 trillion. This sell-off has been driven by regulatory fears, profit-taking, and broader economic uncertainty.

The report further mentions that Bitcoin is testing critical support at $80,000 after failing to sustain momentum above $91,252. If the support level gives way, it might invite a deeper correction with the next relevant support zone visible at $68,080.

The lower time frames also highlight the potential for a steeper decline. A glance at the 4-hour chart reveals