Why Is the Crypto Market Down Today?

The total crypto market cap (TOTAL) remained under pressure due to concerns over the US economy. Bitcoin (BTC) led the decline, falling to $76,600 during today’s intra-day lows, while Artificial Superintelligence Alliance (FET) led the altcoins with a 15% drop.

In the news today:-

1. President Donald Trump is set to sign an executive order to reverse crypto debanking regulations from the Biden administration. The order aims to dismantle policies linked to “Operation Choke Point 2.0,” which hindered crypto businesses access to banking services.
2. The SEC is withdrawing a proposal to expand its control over crypto exchanges. The rule, introduced under former Chair Gary Gensler, aimed to redefine exchanges to include certain “communications protocols” affecting digital asset businesses.

The Crypto Market Slides

The total crypto market cap (TOTAL) has experienced a significant drop, losing $57 billion in the last 24 hours and falling to $2.55 trillion. Despite this, the two-month-long downtrend remains intact, with TOTAL holding above the critical support level of $2.50 trillion, offering a potential foundation for recovery.

If the market decline persists, TOTAL may break through the $2.50 trillion support level, extending its downtrend. Alternatively, TOTAL could consolidate below the resistance of $2.63 trillion, signaling continued bearish pressure in the market and delaying any potential recovery efforts in the near term.

Total Crypto Market Cap Analysis. Source: TradingView

However, if TOTAL manages to breach the $2.63 trillion resistance and turn it into support, this could signal a reversal of the recent downtrend. A successful flip would set the stage for a recovery, with TOTAL potentially advancing toward $2.75 trillion, bolstering investor confidence.

Bitcoin Falls To Key Support

Bitcoin’s price has continued to move within a broadening descending wedge pattern, dropping to $76,600 today, marking the lowest price in four months. This significant decline has not broken the wedge pattern, keeping the bearish outlook intact but setting the stage for potential recovery if market conditions improve.

Moving forward, Bitcoin is poised for potential recovery. A breach of the $80,000 barrier could trigger further upside momentum. Reclaiming the key level of $82,761 would be a sign of recovery, allowing BTC to regain recent losses and position itself for a more bullish phase in the market.

Bitcoin Price Analysis. Source: TradingView

However, if the downtrend persists, Bitcoin could fall below the support of $76,741, invalidating the bullish outlook. This could lead to further losses and a deeper slide in the price, continuing the bearish trend and signaling heightened risk for investors.

Artificial Superintelligence Alliance Takes A Big Hit

FET price dropped by 15% over the last 24 hours, now trading at $0.450 after losing the $0.458 support level. This breakdown leaves the altcoin vulnerable to additional declines. If the bearish trend continues, FET may struggle to maintain its position and face further downward pressure.

Should the bearish momentum persist, FET could test the $0.400 support level, extending its losses. At its current price, FET is sitting at a four-month low.

FET Price Analysis. Source: TradingView

FET must reclaim the $0.458 support level for the bearish thesis to be invalidated. A successful recovery would pave the way for a move above the $0.524 resistance. If this happens, FET could begin a potential rally, reversing its current downtrend and encouraging a more positive outlook.