Why Is the Crypto Market Down Today?

The total crypto market cap (TOTAL) dropped by $40 billion over the past day, driven by Bitcoin (BTC), which almost reached $93,500 during intra-day lows. Among the altcoins, Virtuals Protocol (VIRTUAL) was the worst performer, declining by 14.7%.

In the news today:-

• The SEC has acknowledged Bitwise’s XRP ETF filing following last week’s submission by Cboe BZX Exchange. While XRP’s price remains stable, the quick recognition is seen as a positive step toward potential approval.
• Strategy (formerly MicroStrategy) is offering $2 billion in convertible senior notes to fund Bitcoin purchases. Despite a pause in acquisitions last week, Saylor’s strategy remains consistent with his usual Bitcoin buying playbook.

The Crypto Market Stays Red

The total crypto market cap dropped by $40 billion due to the lack of bullish cues from the broader financial markets. This drawdown has brought TOTAL to $3.09 trillion. Without a shift in sentiment, the market may struggle to regain positive momentum, keeping prices under pressure.

TOTAL is currently trying to hold above the support of $3.09 trillion. If this support fails, the market could fall to the downtrend support line or even lower, potentially testing the critical $3.00 trillion level. A breach of this level would indicate a deeper downturn in the market.

Total Crypto Market Cap Analysis. Source: TradingView

If the support level at $3.09 trillion holds and the total crypto market cap rebounds, it could push past the resistance at $3.16 trillion. This would mark a recovery and possibly allow for further upward movement in the crypto market, leading to more bullish conditions in the near term.

Bitcoin Swings Multi-Week Low

Bitcoin’s price lost a key support level in the last 24 hours, currently trading at $95,605. This marks a decline below the support of $95,761, signaling the potential for further downside if it cannot reclaim this critical level.

On Tuesday, BTC whiplashed, dropping to $93,500 during the intra-day low, before recovering slightly. This volatility indicates that Bitcoin is vulnerable to a correction toward the next support level of $93,625. A failure to hold this level could lead to further declines, increasing the risk of a bearish trend.

Bitcoin Price Analysis. Source: TradingView

Reclaiming the support of $95,761 is vital for Bitcoin to recover recent losses. If this key level is successfully flipped into support, Bitcoin could start heading back toward $98,212. This recovery would allow BTC to reestablish its bullish momentum and potentially break previous resistance levels.

Virtuals Protocol Investors’ Losses Extend

VIRTUAL fell by 14.7% over the last 24 hours, making it the worst-performing altcoin of the day. Currently trading at $0.981, the altcoin is showing signs of further decline. The price action suggests additional downside potential unless key support levels hold in the near term.

The next key support level for VIRTUAL is at $0.901. If the price drops below this support, it could lead to significant losses for investors. With the altcoin already at a 2.5-month low, failure to hold this level would be a bearish signal, exacerbating the decline.

VIRTUAL Price Analysis. Source: TradingView

However, if VIRTUAL manages to bounce back from $0.901, it could aim for the resistance at $1.30. A successful breach of this level would invalidate the bearish outlook, signaling potential recovery. Reclaiming $1.30 as support would allow VIRTUAL to recover some of its recent losses.