Crypto market overview: The overall crypto market experienced a decline following reports that creditors of the defunct Bitcoin exchange Mt. Gox have begun receiving fiat repayments for their trapped Bitcoin. In the last 24 hours, the crypto market cap has dropped by close to 1.29 per cent with Bitcoin recording a 0.6 per cent decline and currently trades at $42,400. 

On the other hand, MATIC has shown a massive surge in its price, up by almost 21 per cent and currently trading at $1.07. BNB has also recorded a strong surge in its price with a more than 10 per cent rise in the last 24 hours. 

However, the Crypto Fear and Greed Index looks positive and has increased by 2 points since yesterday.

Image credit: Alternative.me

Talking to Republic Business, CoinDCX Research Team said, “BTC is currently below the support/resistance (S/R) flip at $42,800, suggesting slight bearishness. The next key support level is at $40,600, and it's crucial for BTC to hold above this level to maintain its strength and bullish outlook. ETH followed a similar path to BTC and faced a downturn. ETH is still consolidating between two key levels at $2,130 and $2,380. Most altcoins were in the red due to the dip in both BTC and ETH.” 

CoinSwitch Markets Desk also shared their insights into the market movement. CoinSwtich said, “Crypto markets saw a minor correction as BTC briefly traded below $42,000 late last night before honouring the trend line and taking support at around $41,800 mark.” 

Sharing the reasons behind the market correction, Rajagopal Menon, Vice President, WazirX said, “Bitcoin experienced a price decline today as traders swiftly exited their positions amidst rising funding rates, transitioning the market mood from optimism to pessimism. The price is about $42,600, edging closer to a pivotal support mark at $42,400. Analysts warn of a potential drop to $40,700 if this crucial level is breached.”

Meanwhile, expectations of a year-end surge and the upcoming US SEC decision on a Bitcoin ETF are on traders' radars, with increased trading volume signalling sustained interest amid these unfolding events, Menon added.

Technical overview

The current state of the market is defined by a tight range, indicating the ongoing power play between bulls and bears. Although a 37 per cent decline from its peak, Bitcoin is demonstrating resilience above the critical $40,000 support level, Edul Patel, CEO of Mudrex said.

“Meanwhile, Ethereum is following BTC's course with a 2 per cent decline, and the wider altcoin market is predominantly characterised by sell-offs booking short-term gains,” added Patel.

WazirXs’ Menon also shared a technical overview of the market. “The hourly MACD for Bitcoin suggests a deceleration, positioning itself within bearish territory. Additionally, the BTC/USD's hourly RSI has fallen beneath the pivotal 50 mark, signalling potential downward momentum. As for crucial price levels, notable support zones are identified at $42,000, followed closely by $41,620. Conversely, key resistance barriers lie at $43,000, $43,200, and $44,300, indicating areas where the asset may face selling pressure.” 

Sharing the key altcoins to look out for, Vikram Subburaj, CEO, Giottus said, “Ethereum, XRP, Avalanche - have shed most of their weekly gains as Bitcoin dominance has briefly risen to 52 per cent. Among the top 15, BNB and Polygon (MATIC) are the top performers today with a 8 per cent and 12 per cent daily gain respectively. MATIC is now encountering resistance at $1.” Ethereum ($2,250), BNB ($300), Solana ($115), Cardano ($0.65), and Polygon ($1.15), can observe another upside in the coming days.”