Why Is The Crypto Market Down Today?

The total crypto market cap (TOTAL) and Bitcoin (BTC) held their ground on Tuesday following a bearish start to the week. Zcash (ZEC) followed in their footsteps, marking a 22% drop in 24 hours.

In the news today:-

• Vanguard will begin allowing crypto-focused ETFs and mutual funds to trade on its platform starting December 2, giving more than 50 million customers regulated access to Bitcoin, Ether, XRP, Solana, and other major assets. However, the firm will continue to block meme-coin products and has no plans to launch its own crypto funds.
• Washington regulators ordered CoinMe to stop all money-transfer operations after alleging the company treated more than $8 million in customer funds as revenue. The emergency action claims CoinMe failed to safeguard crypto voucher payments and engaged in “unsafe and unsound practices.”

The Crypto Market Remains Red

The crypto market saw a sharp downturn over the last day, shedding $133 billion and dropping to $2.90 trillion. TOTAL is currently hovering slightly above the critical $2.87 trillion support zone as traders grapple with heightened volatility and broad uncertainty.

A surge in liquidations accelerated the sell-off, driving major crypto tokens steeply downward. Should this momentum continue, TOTAL could slip beneath $2.87 trillion and slide toward $2.80 trillion, which would deepen the market’s overall losses.

Total Crypto Market Cap Analysis. Source: TradingView

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If the market steadies, however, TOTAL could rebound from the $2.87 trillion support region. A move back up to $2.93 trillion would mark the first sign of recovery. Clearing that level could reestablish the path toward $3.00 trillion and potentially higher targets.

Bitcoin Has A Shot At Recovery

Bitcoin is currently trading at $86,567 while clinging to resistance at $86,822. If broader market weakness continues, BTC risks slipping under $85,204, which would increase downward pressure.

A break below this threshold would expose Bitcoin to a potential decline toward $82,503. Losing that area could pave the way for a deeper move down to $80,000, intensifying investor losses.

Bitcoin Price Analysis. Source: TradingView

Should market sentiment improve, Bitcoin may bounce off the $85,204 support and regain recovery traction. A rally toward $89,800 would be the first major indicator of a recovery. Surpassing that level is crucial for confirming a broader market rebound.

Zcash Continues To Fall

Zcash (ZEC) has plunged 22% in the last 24 hours, now trading around $331 and sitting just below its key $344 support. The abrupt downturn signals intense selling pressure as weakness continues across the crypto sector.

Bears remain firmly in control, with ZEC losing the $344 support level, resulting in a decline towards the $300 support level. If the $300 support gives way, ZEC could tumble toward $260, deepening its sharp correction.

ZEC Price Analysis. Source: TradingView

If conditions stabilize, ZEC may attempt to recover. A push back to $400 would be the first meaningful sign of strength. Clearing $344 is necessary for a move toward $400 and eventually toward $442, which would invalidate the bearish outlook.