Virtual Assets, Trading Volume Disappears...Bitcoin Adjusts After Exiting Ascending Channel

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The virtual asset market is facing a risk of bearish reversal, forming a double top pattern amidst decreasing trading volume. Bitcoin (Bitcoin, BTC) has entered a correction phase after failing to break above the upper boundary of its ascending channel.

Crypto media outlet BeInCrypto reported on May 12 (local time) that the total cryptocurrency market capitalization (TOTAL) dropped by 0.86% from the previous day, reaching $2.67 trillion. A double top structure, with two peaks forming around $2.72 trillion, was confirmed on the chart. After a rally without accompanying trading volume, buying interest has dried up, indicating a typical bearish reversal signal. News that U.S. President Donald Trump rejected Iran's peace proposal significantly dampened market sentiment for risk assets.

Bitcoin is trading at around $81,012, down 0.87% from the previous day. Bitcoin had been moving within an ascending channel maintained since late March but recently failed to break above the channel's upper resistance. During the price increase in early May, daily trading volume actually decreased, weakening the upward momentum. For further gains, the daily candle must close above $83,689. If the support level of $79,489 breaks, there is a risk of increased downward pressure.

Zcash (Zcash, ZEC) is currently trading at $556 after a recent 102% surge, undergoing a 4.4% correction. Despite the sharp rise, the chart maintains a bull flag structure, a pattern indicating continuation of the uptrend. The $546 level is acting as a key support, and selling pressure appears to be gradually decreasing. If Zcash breaks above $562, it will enter the next phase of its ascent. It could then extend its target prices beyond the $623 resistance to $670 and $872.

The primary support level for the total market capitalization is the Fibonacci 23.6% retracement zone at $2.66 trillion. Subsequent key support zones are set at $2.63 trillion and $2.60 trillion. If the $2.60 trillion neckline breaks on a daily close basis, a further 4.4% drop to $2.48 trillion is possible. Similarly, if Bitcoin fails to hold $79,489, the ascending channel structure will be invalidated, making a price decline inevitable.

Geopolitical instability is being reflected in the market, leading to a continuous flow of capital away from risk assets. The S&P 500 index also remains range-bound, unable to provide new liquidity to the cryptocurrency market. The total market capitalization must decisively reclaim the $2.72 trillion resistance to escape the downtrend. Investors are monitoring the breakdown of key support levels and responding to the expanding volatility.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*