The aggregated crypto market has been struggling throughout the past few weeks. Its incurring an insane selloff was catalyzed by Bitcoin’s decline from its mid-February highs of $10,500 to lows of $3,800.
This selloff significantly damaged the market’s technical strength. Consequently, it lead many investors and analysts to adopt a bearish sentiment – a far cry from that seen throughout the beginning part of the year.
One prominent analyst is noting that there is one key level that bulls must surmount if they want to propel the market higher. A failure to do so could lead to significant losses in the days and weeks ahead.
Crypto Market Struggles to Break Key Resistance as Bearishness Grows
At the time of writing, the aggregated crypto market capitalization is sitting at roughly $174 billion, which is around where it has been trading at over the past few days.
This massive decline came about in tandem with the market-wide selloff. As a result, it led many major cryptocurrencies to plunge by 50% or more.
Michaël van de Poppe, a popular cryptocurrency analyst on Twitter shared his opinion. He explained that bulls need to reclaim the $185-190 billion market cap level to make market bullish.
The total market capitalization of crypto is pretty clear here too. Needs to reclaim the $185-190 billion level to become bullish. Until then, just a bearish retest,” he explained.
What Could Tip the Scales Back into Bull’s Favor?
In the near-term, it is possible that Bitcoin is in the process of forming a bullish “triple bottom” formation. Yet Big Cheds – another popular crypto analyst – explained that BTC is still on “unsteady footing.”
Bitcoin: 1 hour – On unsteady footing, trying to form a triple bottom,” he explained while pointing to the below chart.
Should Bitcoin confirm that pattern and begin climbing higher, it is possible that the market-wide surge will lead the total market capitalization to surmount its key near-term resistance, sparking a notable rally.