Why Is the Crypto Market Down Today?

While the total crypto market cap (TOTAL) did not paint green on the charts, it did not observe many outflows either. Bitcoin’s price is hovering below the crucial support of $64,883, and altcoins such as ZKsync (ZK) are not doing too well either.

In the news today:-

• MicroStrategy added another 11,931 BTC for $786 million to its holdings. Following this purchase, the Michael Saylor-led company now holds 226,331 BTC worth about $15 billion.
• California District Judge William H. Orrick stated that he was “inclined to deny” a motion to dismiss a lawsuit between Kraken and the Securities and Exchange Commission (SEC). He stated that crypto assets are securities, which is plausible.

The Total Market Cap Remains Subdued

The total cryptocurrency market capitalization is trying to transform its current uptrend line into a support level after experiencing billions of dollars worth of outflows within this week. The market cap is currently at $2.29 trillion, staying above the important support level of $2.29 trillion.

Holding above this key support, If the uptrend line successfully turns into support, it could also breach past the $2.39 trillion resistance level. This is crucial for the market cap to recover and reach the $2.50 trillion mark again.

Read More: What Are Synthetic Assets?

Total Market Cap Analysis. Source: TradingView

However, if this conversion fails, the uptrend line may become invalid, and TOTAL could potentially drop below $2.29 trillion, likely to $2.20 trillion.

Bitcoin’s Price Loses Support

Bitcoin’s price at $64,607 failed to rebound from the critical support level of $64,883, a threshold that had been tested multiple times. Although BTC hadn’t indicated an imminent rally, it appeared to be on the path to recovery.

However, as Bitcoin’s price failed to maintain the $64,883 support level, it could witness further declines, with prices potentially dropping to $63,700 or even $61,000.

Read More: Bitcoin Halving History: Everything You Need To Know

Bitcoin Price Analysis. Source: TradingView

On the other hand, if BTC reclaims $64,883, it could bounce back and re-establish $68,500 as a support level. This would catalyze progress towards the all-time high of $73,650. However, this recovery might take some time, given the current market conditions.

ZKsync Takes a Hit

ZKsync’s price, currently at $0.19, fell below the support of $0.20. Given that the altcoin launched just this week, some volatility is not surprising. This would also bring out key support and resistance levels for the altcoin. 

At the time of writing, ZK appeared to have fallen 14% over the past 24 hours. This drawdown was in response to probable profit taking following the recent uptick.

Read More: What Is zkSync?

ZKSync Price Analysis. Source: TradingView

Further drawdown is possible, but whether ZK can recover from it is the question.