Recently, the cryptocurrency market has experienced a significant adjustment. In the past 24 hours, the total market capitalization has plummeted by $133 billion, currently dropping to $3.98 trillion. This pullback is primarily influenced by U.S. macroeconomic data, including initial jobless claims and the Producer Price Index (PPI) report, which triggered a wave of sell-offs among investors.

As the market leader, Bitcoin has also not been spared from difficulties. Its price has dropped to $118,833 and is currently hovering around the key support level of $117,261. If this level is breached, it could trigger further declines with the risk of dropping to $115,000.

It is worth noting that although the market has overall declined, the total market capitalization remains above $3.94 trillion. This level may become a potential starting point for a rebound. Considering the bullish sentiment still present in the market, the possibility of a rebound in the cryptocurrency market in the short term cannot be ruled out, with the potential to challenge the psychological barrier of $4.00 trillion again.

However, if the market fails to hold its current position and the total market capitalization falls below 38,900 USD, it may trigger a longer-term market downturn. Therefore, investors should closely monitor this key support level.

Among many cryptocurrencies, Virtuals Protocol (VIRTUAL) has performed particularly poorly, plummeting 11.7% within 24 hours, currently quoted at $1.21. The next important support level for this token is at $1.14; if this level is broken, the price may further drop to $1.00, which would be a rather pessimistic signal.

Overall, the current cryptocurrency market is at a sensitive crossroads. Although it may continue to face pressure in the short term, as long as the key support levels can be maintained, there is still the possibility of a rebound. Investors need to remain vigilant and closely monitor market trends and changes in key price levels.