Why Is the Crypto Market Down Today?

The total crypto market cap (TOTAL) and Bitcoin have faced bearish pressure over the last 24 hours, losing key support levels. Among the altcoins, Onyxcoin (XCN) experienced the largest decline, dropping by more than 10%. This sell-off highlights the ongoing challenges in the broader crypto market.

In the news today:-

• BNB Chain’s 2025 Tech Roadmap focuses on reducing transaction latency and processing 100 million transactions daily. The roadmap emphasizes AI solutions to achieve these goals, adopting an “AI-First” approach for improvements in speed, scalability, and developer tools.
• The SEC has opened a public comment period for the Canary Solana Trust ETF, along with similar applications from VanEck, 21Shares, and Bitwise. Analysts believe 2024 may see the approval of Solana and other altcoin ETFs, although delays are common in the approval process.

The Crypto Market Dips

The crypto market has seen a significant decline, losing $53 billion in the last 24 hours. The market cap currently stands at $3.08 trillion, slipping below the key support level of $3.09 trillion. This loss reflects ongoing bearish sentiment within the broader cryptocurrency market.

The next critical support level for the total crypto market cap lies at $3.00 trillion. While a decline to this level remains possible, it is unlikely, given the volatility in broader market cues. The recent price movements suggest that the market may stabilize before testing further downside levels.

Total Crypto Market Cap Analysis. Source: TradingView

If the $3.09 trillion support is reclaimed, the total crypto market cap could attempt a recovery, aiming for $3.16 trillion. Reclaiming this support would provide a foundation for a potential upward move, signaling improved market sentiment and the possibility of regaining previous gains.

Bitcoin Hits A Monthly Low

Bitcoin’s price has dropped, currently trading at $95,489 after losing support at $95,869. The decline marks a shift in momentum, signaling potential weakness in the market.

The decline occurred after Bitcoin hovered above the $95,869 support level for the past week. If the downward trend continues, BTC could drop further to $93,625. This level represents a key support point, and a breach could signal more significant losses for the leading cryptocurrency.

Bitcoin Price Analysis. Source: TradingView

Reclaiming the $95,869 support level would offer BTC a chance to recover its recent losses. A successful bounce from this level could pave the way for Bitcoin to retarget the $100,000 mark, invalidating the bearish outlook and signaling renewed bullish momentum in the market.

Onyxcoin Notes Losses

XCN was the worst performer of the day, falling by just over 10% in the last 24 hours. However, it managed to hold above the critical support level of $0.0184. The altcoin’s ability to maintain this level provides some hope for a potential recovery in the short term.

During Wednesday’s intra-day trading hours, XCN saw a slight recovery of 5%, which may help prevent further price drawdown. However, if the support at $0.0184 is breached, the altcoin could fall to $0.0160 or even lower. 

XCN Price Analysis. Source: TradingView

If XCN successfully breaks through the $0.0237 resistance and flips it into support, the bearish outlook will be invalidated. This would provide an opportunity for further growth and recovery, as the altcoin could begin moving toward higher price levels, potentially leading to a more sustained uptrend.