Why Is the Crypto Market Down Today?

The cryptocurrency market experienced a downturn in the past 24 hours, with the total market capitalization (TOTAL) and Bitcoin (BTC) both recording declines. This follows a period of relative stability, indicating a shift in market sentiment. This downturn also impacted altcoins, with Layer-1 coin Aptos (APT) leading as the market’s top loser.

In the news today:

• Bitcoin has surpassed gold as the top financial asset in the ETF market, signaling a significant shift in investor preferences.
• Bitwise is introducing a Solana staking ETP in the European Union, shifting its strategy after recent setbacks in securing approval for a Solana ETF in the US.

TOTAL Drops Toward Support

The total crypto market cap marked a red candlestick on the charts today as the combined value of all cryptocurrencies fell by $101 billion. TOTAL currently stands at $3.54 trillion, hovering above support formed at $3.48 trillion. 

TOTAL’s negative Balance of Power (BoP) reflects the decline in bullish pressure in the general cryptocurrency market. This indicator, which measures the strength of buyers versus sellers in a given market over a specific period, is below zero at press time, at -0.73. 

When an asset’s BoP is negative, it indicates that selling pressure outweighs buying pressure, suggesting bearish market sentiment. If selling activity increases, TOTAL could test the $3.48 trillion support level. Failure to hold this support may result in a further drop to $3.25 trillion.

Crypto Market Cap Analysis. Source: TradingView

On the other hand, a resurgence in buying pressure could push TOTAL toward its all-time high of $3.73 trillion.

Bitcoin May Drop Under $100,000 If Selloffs Persist

Leading coin Bitcoin trades at $103,613, noting a 3% price decline over the past 24 hours. Its current value represents a 4% drop from its all-time high of $108,353 recorded during the intraday trading session on December 17. 

Bitcoin has to flip this new price peak into a support floor to continue its uptrend. A successful break above this price level could propel BTC to a new all-time high, potentially past the highly coveted $110,000 mark.

Bitcoin Price Analysis. Source: TradingView

However, a failed attempt to breach this resistance level may cause BTC’s price to slip toward $95,651, its next major support.

Aptos Leads the Market Slump

Over the past week, APT trended upward in an attempt to reclaim its multi-month high of $15.33. However, this trend has been reversed over the past 24 hours as the layer-1 coin has shed 10% of its value to lead as the market’s top loser. If the downtrend continues, APT’s price will fall to $11.12. 

APT Price Analysis. Source: TradingView

On the other hand, if the uptrend recommences, APT’s price could break above the resistance formed at $12.97 and attempt to revisit its nine-month high of $15.33.