Why Is the Crypto Market Down Today?

The total market cap (TOTAL) is attempting to secure the $2.3 trillion mark as support. At the same time, Bitcoin’s (BTC) price is also fighting the bearish cues to prevent a decline below $60,000. 

Amidst this bearishness is Bittensor (TAO), which has lost the most this past week, falling to a three-month low as a result.

In the news today:-

  • Bitcoin staking platform BounceBit is set to launch its mainnet today. Along with this, the token airdrop and trading on Binance will take place.
  • China’s CBDC, digital yuan, is observing selling at the hands of its users. The participants of the state-backed digital asset program are exhibiting concerns about holding the digital currency

Why Is the Crypto Market Down Today?

TOTAL Could See Some Upside

The total market cap is currently in a symmetrical triangle, testing the lower limit as support at $2.17 trillion. The upper limit has been attempted to be breached thrice, but it has failed. This shows that a breakout would require considerable bullishness from investors.

If this bullishness is not secured, a breakdown to $2.11 trillion will likely mark a two-week low. Losing this support would result in a sharp drop to $2 trillion, marking a two-month low.

On the other hand, if the bearishness fades and a breakout takes place, the likely uptick could push TOTAL to breach the $2.3 trillion multi-week resistance.

Bitcoin Price Is Still Safe

Bitcoin’s price is around $61,000, which has been a key support level for many days. Despite the slight decline noted in the past 24 hours, BTC still has a shot at recovery, provided the crypto asset breaks out of the downtrend and secures $63,700 as support.

This would result in a potential uptrend, which is key for investors to regain the losses they witnessed during the drawdown over the past two months.

However, losing this support would cause a drop to $59,119, invalidating all hopes of recovery and sending BTC to $58,000.

Bittensor Correction Continues

Over the last week, TAO price has noted a 22% decline, bringing the altcoin to $352. $350 acts as a crucial psychological support level, and a fall below it would send TAO to $304, extending the correction.

As is, the altcoin is at a three-month low, and the declining volume is supporting the bearish thesis.

However, if shifting cues from the broader market result in a recovery rally, TAO price could reclaim $377 as support. This would result in a rally beyond $400, enabling a recovery of the recent losses.

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