The total cryptocurrency market capitalization (TOTAL) and Bitcoin (BTC) remained stable on Tuesday, following a pessimistic start to the week. Zcash (ZEC) followed the same trend, recording a 22% drop in 24 hours.
In today's news:
Vanguard will start allowing trading in cryptocurrency-focused ETFs and mutual funds on its platform starting December 2nd, giving more than 50 million clients regulated access to Bitcoin, Ether, XRP, Solana, and other major assets. However, the company will continue to block meme cryptocurrency products and has no plans to launch its own cryptocurrency funds.
Washington regulators ordered CoinMe to halt all money transfer operations after alleging that the company treated over $8 million in client funds as revenue. The emergency action claims that CoinMe did not protect payments with cryptocurrency vouchers and adopted 'unsafe and reckless practices.'
The cryptocurrency market remains in decline
The cryptocurrency market has suffered a sharp drop in the last 24 hours, losing $133 billion and falling to $2.90 trillion. Currently, the TOTAL asset is slightly fluctuating above the critical support zone of $2.87 trillion, while investors deal with high volatility and widespread uncertainty.
A wave of liquidations accelerated the sell-off of assets, leading major cryptocurrency tokens to a sharp decline. If this movement continues, the market value of TOTAL could fall below $2.87 trillion and approach $2.80 trillion, which would worsen the overall market losses.
If the market stabilizes, however, TOTAL may recover from the support region of $2.87 trillion. A rise to $2.93 trillion would mark the first sign of recovery. Breaking above this level could reestablish the path towards $3.00 trillion and potentially even larger targets.
Bitcoin has a chance of recovery
Bitcoin is currently trading at $86,567, staying close to the resistance at $86,822. If the widespread weakness in the market persists, BTC risks falling below $85,204, which would increase downward pressure.
A drop below this level would expose Bitcoin to a potential decline to $82,503. Losing this price range could pave the way for an even larger drop to $80,000, intensifying investors' losses.
If market sentiment improves, Bitcoin may recover from the support at $85,204 and resume the recovery pace. A rise towards $89,800 would be the first important indicator of a recovery. Breaking above this level is crucial to confirm a broader market recovery.
Zcash continues to decline
Zcash (ZEC) plummeted 22% in the last 24 hours, now trading around $331 and just below its important support at $344. This abrupt drop signals strong selling pressure as weakness continues in the cryptocurrency sector.
Bears remain firmly in control, with ZEC losing the support level of $344, resulting in a drop towards the support level of $300. If the $300 support is broken, ZEC could plummet to $260, deepening its strong correction.
If conditions stabilize, ZEC may attempt to recover. A rise to $400 would be the first significant sign of strength. Breaking above $344 is necessary for a move towards $400 and, eventually, $442, which would invalidate the bearish outlook.
The article Why is the cryptocurrency market bearish today 02/12/2025? was first seen on BeInCrypto Brazil.
