Bitcoin Slips as Crypto Market Falls Below $4 Trillion

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Bitcoin prices retreated on Sunday, sliding more than 2.5% over the past 24 hours to trade near $115,240. The decline came as the global cryptocurrency market capitalization fell under the $4 trillion threshold, signaling fresh caution among traders. Despite the pullback, Bitcoin remains the world’s largest digital asset with a market cap of roughly $2.29 trillion and a circulating supply of 19.9 million coins out of the 21 million maximum.

Technical indicators point to renewed bearish momentum. Charts show Bitcoin has slipped out of its rising channel and is now consolidating at around $115,480. The inability to reclaim the 50-day simple moving average at $117,695 has highlighted weakening strength. Analysts note that candlestick formations near the $116,000 level suggest hesitation among market participants, making it a key support zone in the near term.

Momentum signals have also tilted negative. The Relative Strength Index (RSI) sits near 32, close to oversold territory. While this could set up a short-term bounce, it also reflects heavy selling pressure. The Moving Average Convergence Divergence (MACD) indicator remains in bearish territory, with widening divergence pointing to continued downward risk.

Short-term scenarios suggest that a decisive close below $115,000 could push Bitcoin toward $114,650 and potentially $112,000, both prior support levels. On the upside, reclaiming $119,400 would weaken the bearish outlook and could set up a move to $122,250. Sustained buying beyond those levels would be required to retest the $130,000 range.

Support levels are being closely monitored at $116,000, $114,650, and $112,000, while resistance stands at $117,695, $119,400, and $122,250. Traders remain cautious, balancing the possibility of a deeper correction with the potential for a quick rebound if buying momentum returns.

Market observers stress that while short-term volatility has increased, many long-term investors view corrections as part of Bitcoin’s broader growth cycle. With supply fixed at 21 million coins and ongoing institutional interest, price retracements are often seen as opportunities for repositioning rather than signals of structural weakness.

In related developments, new blockchain projects continue to attract attention. One of the latest, Bitcoin Hyper ($HYPER), is positioning itself as a Bitcoin-focused Layer 2 solution built on the Solana Virtual Machine. The initiative is designed to combine Bitcoin’s network security with Solana’s faster transaction speeds, highlighting how developers are seeking to expand Bitcoin’s use cases beyond simple value storage.

As Bitcoin consolidates near $115,000, market direction over the coming days will determine whether sellers maintain control or buyers step back in to drive prices higher.