Why Is The Crypto Market Up Today?

What Happened

Resistance: Close above $2.67 trillion opens $2.75 trillion

Support Floor: $2.54 trillion holds the rally together

Breakdown Target: Double top points to $2.40 trillion, a 5.29% drop

Market Context

The crypto market is up on Tuesday, August 25, holding near $2.66 trillion after an upmove that began on August 14 and a rally that took full shape on August 18.

Short squeezes have powered the climb, forcing bearish traders to buy back in. But long liquidations are creeping back, adding risk as the market presses a ceiling it has failed to break three times.

1. The Market Cap Stalls at a $2.67 Trillion Wall

The total crypto market cap has stalled three times since August 22 at $2.67 trillion, the 0.236 Fibonacci line that measures how far a rally pulls back. A daily close above it opens the path toward $2.75 trillion and $2.88 trillion.

However, the same chart shows the danger below. If the market loses the $2.54 trillion floor, a double top pattern points to a 5.29% drop toward $2.4 trillion, which would unwind much of the August rally.

Still, buying volume has fallen since August 22, and XMR keeps stalling near $444. A daily close above $463 would open $494 and $544, while a failure to reclaim $444 leaves $413 as the floor separating more upside from a deeper pullback.

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Why It Matters

The rally still runs on a short squeeze, where bearish traders get forced to buy back. Shorts keep getting flushed daily, with $216 million wiped out over 24 hours, but longs are now being liquidated too at $191 million, per Coinglass data, a sign the move is getting riskier.

Meanwhile, a macro shift keeps risk appetite alive. The US Treasury said on August 19 it would double its bond buybacks to $4 billion, a move meant to pull bond yields down and push money toward riskier bets like crypto.

Two-Way Risk: Longs now flushing too, $191 million in 24 hours

Analyst’s View: With the rally leaning on short-covering rather than fresh buying, keeping an eye on the risk is imperative. The clearest forward threat is the Treasury buybacks not starting until September 9, so if long-end yields stay high into that date, the macro support weakens and a slip below $2.54 trillion could confirm the double top.

Details

2. Short Squeezes and Treasury Relief Keep Bulls in Control

Record call demand on the Bitcoin ETF IBIT shows bulls are already positioned.

The Squeeze: $216 million in shorts liquidated in 24 hours

Macro Fuel: Treasury buybacks doubled to $4 billion

Coin Spotlight: Monero (XMR)

Not every winner is riding just the squeeze. Monero (XMR) is up 5.7% on Tuesday and 21% over 30 days, in a rising bullish channel held since June 7.

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Momentum: XMR up 21% over 30 days

Breakout Level: Close above $463 opens $494

Invalidation: Losing $444 exposes $413 floor