Crypto Market Hits $3.8 Trillion Before Sharp Rejection; What’s Next?

Key Points

1. The total cryptocurrency market cap surged to $3.8 trillion before a sell-off reduced it to $3.67 trillion, with trading volumes dropping by 20%.

2. On-chain data from CryptoQuant showed a sharp decline in cumulative net taker volume, signaling increased sell pressure, particularly on exchanges like Binance.

3. The market rejection occurred near the 0.236 Fibonacci retracement level ($3.93T), suggesting a possible healthy correction if support holds above $3.4T.

4. Technical indicators like RSI and MACD show weakened momentum, with the $3.64T–$3.4T range being a critical short-term support zone.

5. A breakdown below $3.4T could lead to further declines toward $3.0T, while a bounce from current levels might target higher Fibonacci resistance levels ($4.07T–$4.3T).