Why Is the Crypto Market Down Today?

The total crypto market cap (TOTAL) and Bitcoin (BTC) are seemingly stabilizing today as volatility has declined. Movement (MOVE), however, could not escape the residue bearishness, posting a 13% correction over the last 24 hours.

In the news today:-

• Panama City’s mayor, Mayer Mizrachi, announced that the city will accept Bitcoin, Ethereum, and stablecoins for taxes and fees. However, due to legal requirements, the payments will be exchanged for USD, limiting the potential for broader crypto adoption in the city.

• CoinGecko’s Q1 2025 report reveals an 18.6% drop in the total crypto market cap, a loss of $633.5 billion. Investor activity also declined, with a 27.3% fall in daily trading volumes and a 16.3% decrease in spot trading, partially attributed to the Bybit hack.

The Crypto Market Finds Support

The total crypto market cap is holding steady at $2.61 trillion, maintaining support at this level despite recent market trends. The lack of bullish cues from broader financial markets has contributed to the subdued price action. This stability, however, could offer a base for potential price movement.

While market conditions remain largely bearish, the support at $2.61 trillion presents a crucial opportunity. If sustained, it could enable the total market cap to break through the $2.67 trillion resistance, creating a path toward $2.74 trillion.

Total Crypto Market Cap Analysis. Source: TradingView

If the total crypto market cap fails to hold above $2.61 trillion, further downside could be in store. A slip below this support level may see the market cap fall to $2.50 trillion, exacerbating the ongoing losses. Such a decline could trigger more panic and prolonged bearishness.

Bitcoin Is Looking For Breakout

Bitcoin’s price is currently hovering around $84,000, and it is struggling to break through the $85,000 resistance level. The lack of momentum has led to a stagnant price movement, keeping Bitcoin from seeing significant gains or facing sharp losses. The market remains uncertain, with no clear direction in sight.

The Bollinger Bands are tightening, suggesting that Bitcoin is preparing for a potential surge in volatility. A breakout could push Bitcoin past the $85,000 resistance, reaching towards $65,000. However, a breakdown could send the price below $82,619, making the latter scenario a possibility if the market remains negative.

Bitcoin Price Analysis. Source: TradingView

If Bitcoin fails to hold above $82,619, the price could fall below $80,000 and approach the $78,481 support level. This decline would invalidate the bullish thesis and indicate continued weakness.

Movement Moves In The Wrong Direction

MOVE’s price recently formed a new all-time low at $0.234, reflecting the intensified bearish market conditions. The altcoin is down 13% in the last 24 hours, trading at $0.240. This price action has left investors cautious, and the outlook remains uncertain in the face of continued selling pressure.

Further declines appear likely if the broader market conditions fail to improve. MOVE could slip toward the $0.200 level, forming a new all-time low. This would deepen the losses and add to the negative sentiment surrounding the altcoin. 

MOVE Price Analysis. Source: TradingView

The only way to invalidate this bearish thesis is if MOVE manages to rise back toward the $0.307 resistance level. Successfully flipping this level into support would signal a shift in momentum and could push the price towards $0.374. This would mark a significant recovery for the altcoin.