 ▲ Bitcoin, Ethereum Plunge / ChatGPT-generated image |
The total cryptocurrency market capitalization has turned downward after repeatedly failing to break through a key resistance level. Major assets led by Bitcoin (BTC) are threatening psychological support levels, sharply dampening investor sentiment.
According to crypto-focused outlet BeInCrypto on Feb. 17 (local time), approximately $48 billion evaporated from the total crypto market cap over the past 24 hours, pushing it down to around $2.33 trillion. The market failed to surpass the $2.37 trillion mark, which has acted as a strong resistance zone for weeks, resulting in intensified downward pressure. Heightened macroeconomic uncertainty coupled with a lack of liquidity has deepened investors’ aversion to risk assets, leading to a tense standoff between defensive buying aimed at preventing further declines and short-term profit-taking.
Bitcoin remains trapped near the lower end of its range for the 10th consecutive day after being blocked by the psychological $70,000 resistance level. The Chaikin Money Flow (CMF) indicator, which tracks capital inflows and outflows, fell below the zero line, signaling continued capital outflows from the market. If buying momentum continues to weaken, BTC faces a significant risk of sliding toward the $65,000 support level. To invalidate the bearish outlook, it must reclaim $72,294.
Dogecoin (DOGE) has also been hit hard by market volatility, plunging 7.5% in a single day and remaining under pressure. After facing rejection at the $0.1107 resistance level, the price fell below the $0.1028 support, reinforcing a short-term downtrend. Although the Money Flow Index (MFI) remains in positive territory, leaving room for a rebound, further corrections toward $0.0966 or even $0.0883 remain possible if overall market sentiment fails to recover.
Within the ecosystem, capital management moves by major institutions are emerging as key variables. Strategy announced plans to convert $6 billion worth of convertible notes into equity to reduce its debt burden, reaffirming that it would face no issues meeting obligations even if Bitcoin were to crash to $8,000. Apollo Global Management has also partnered with Morpho to acquire 90 million MORPHO tokens, representing 9% of the total supply, signaling efforts to expand its on-chain lending infrastructure.
Without a strong external catalyst, the crypto market is likely to continue moving sideways around the $2.3 trillion level. A confirmed influx of new institutional capital will be needed to provide momentum for a rebound toward the $2.45 trillion mark. Investors should closely monitor changes in macroeconomic indicators and whether key technical support levels are breached, while establishing cautious investment strategies to prepare for heightened volatility.
*Disclaimer: This article is for investment reference only and we are not responsible for any losses resulting from investment decisions based on it. The content should be interpreted for informational purposes only.*