Why Is the Crypto Market Down Today?

The total crypto market cap (TOTAL) and Bitcoin (BTC) are holding the support levels, even as mixed signals continue to plague the performance of altcoins. While the crypto king noted recovery, most of the altcoins continued to suffer the wrath of the bears, with Onyxcoin (XCN) leading the losses with a 14% decline.

In the news today:-

• Binance’s latest market insights report highlights the rise of meme coins and ETF filings, with over 37 million tokens in circulation, mostly on Solana. There are 47 active ETF filings in the US, reflecting growing institutional interest. While the market saw overall gains in January 2025, AI-related crypto projects suffered significant losses due to DeepSeek’s impact.
• Deribit is banning Russian users due to EU sanctions, despite being based in Dubai but tied to Dutch regulations. The move may hurt Deribit more than Russia’s crypto community, where other exchanges remain dominant.

The Crypto Market Is Holding Above Support

The total crypto market cap is maintaining support at $3.09 trillion, currently standing at $3.12 trillion. This stability indicates resilience among major cryptocurrencies, preventing a further decline.

Despite neutralizing losses over the last 24 hours, the total crypto market cap has yet to breach the $3.16 trillion resistance. This level remains a crucial barrier to further growth. If the market fails to break through, it could consolidate under this threshold, delaying any potential bullish momentum in the near term.  

Total Crypto Market Cap Analysis. Source: TradingView

A successful breach of the $3.16 trillion barrier could fuel a rally toward $3.28 trillion, signaling a shift in sentiment. This move would invalidate the bearish outlook and strengthen confidence in the broader cryptocurrency market.

Bitcoin Is Attempting To Recover

Bitcoin’s price has shown resilience, climbing to $97,421 after rebounding from the lower trend line of its ascending wedge pattern. This movement signals a potential continuation of the uptrend, provided buying pressure remains strong.

The next critical resistance for Bitcoin is at $100,000, a psychological and technical barrier. If BTC surpasses this level, further upside movement could follow.

However, the cryptocurrency remains vulnerable to corrections. A drop below $97,000 could expose it to a retracement toward $95,668, potentially weakening investor sentiment in the near term.

Bitcoin Price Analysis. Source: TradingView

If Bitcoin successfully reclaims $100,000 as support, it could pave the way for further gains. The next upside target stands at $105,000, which could attract renewed buying interest. This movement would reinforce Bitcoin’s bullish structure, reducing recent losses.

Onyxcoin Notes Sharp Drawdown

XCN’s price has plunged 14% in the past 24 hours, making it the worst-performing cryptocurrency among the top 100 assets. The sharp decline has raised concerns among investors as selling pressure continues to mount. If the bearish momentum persists, XCN could struggle to recover in the near term.

Currently trading at $0.0258, XCN remains above its crucial support level of $0.0237. However, ongoing selling pressure could push the altcoin below this threshold. If this happens, the asset may experience further losses, increasing bearish sentiment. A break below $0.0237 could trigger additional selling, intensifying downside risks.

XCN Price Analysis. Source: TradingView

Conversely, a rebound from the $0.0237 support level could signal a potential recovery. If buying pressure increases, XCN could rise toward $0.0358, retracing recent losses. A move past this resistance level would invalidate the bearish outlook.