Why Is the Crypto Market Down Today?

The total crypto market cap (TOTAL) and Bitcoin’s price continue to face the impact of lingering bearishness. The increasingly concerning market conditions have resulted in SATS (1000SATS) halting its ongoing rally.

In the news today:-

• TON blockchain integrated Injective & Pyth Network to advance Telegram’s Web3 reach. This collaboration is key to boosting DeFi capabilities and user interoperability.
• $1.86 billion in Bitcoin and Ethereum options are set to expire, which could trigger bearishness. The recent US CPI data is further fueling the market’s uncertainty.

The Crypto Market Consolidates

The total crypto market cap is currently consolidated between $2.11 trillion and $2.00 trillion. The market has tested both ranges as resistance and support in the past, which has strengthened them further.

A bounce back is expected from the $2.00 trillion level, which could fuel a rally to $2.11 trillion. Following the recent sell-off and US CPI-induced uncertainty, the persisting bearishness could hamper the rise.

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Total Crypto Market Cap Analysis. Source: TradingView

However, if the $2.00 trillion support is lost, the investors’ losses could extend, bringing the total to $1.88 trillion.

Bitcoin’s Price Drawdown Continues

Bitcoin’s price rose by 4% to close above $60,000, seemingly canceling the recent decline. But this turnaround failed, as BTC plummeted to $57,000 yesterday.

At the time of writing, the crypto asset is back above $58,200; however, it has a long way to go. In order to recover the recent losses, BTC would need to first reclaim $63,00 as support and then head towards $65,000.

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Bitcoin Price Analysis. Source: TradingView

On the other hand, a decline would prove to be highly risk-bearing for investors. This is because BTC would end up falling to $54,500.

SATS Loses It Big

Impacted by the broader market cues, the SATS price fell by 12% in 48 hours, bringing the altcoin to $0.000289. The rally was halted, keeping the crypto asset below the next critical resistance level of $0.000349.

The altcoin could now note a decline to $0.000253, which would wipe a chunk of the profits noted by SATS holders recently. Losing it would erase all the gains from the early August rally

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SATS Price Analysis. Source: TradingView

Recovery does appear difficult, but if successful, SATS price would have a shot at breaching $0.000349, invalidating the bearish thesis.