Why Is the Crypto Market Down Today?

From theblock by Aaryamann Shrivastava

The Crypto Market Loses A Huge Chunk

The total  crypto market  cap has dropped by $104 billion in the past 24 hours, falling to $3.27 trillion. This decline reflects growing bearish pressure across the market, raising concerns among investors about the potential for further losses. The market’s ability to stabilize remains uncertain.

Despite the drawdown, TOTAL could recover and reclaim $3.28 trillion as support, signaling the possibility of a rebound. But if this fails and the macro-financial cues remain bearish, a drop to $3.10 trillion is on the cards.

  Total Crypto Market Cap Analysis. Source: TradingView

On the other hand, if trading activity regains momentum, this bearish outlook will be invalidated.  TOTAL may successfully  break above the key resistance level and attempt to revisit the barrier at $3.49 trillion.

Bitcoin Is Holding Above The Crucial Support

Bitcoin’s price  has dropped to $96,444, holding above the critical support at $95,668. This decline follows BTC’s inability to reclaim $100,000 as a support level. The current price action reflects heightened uncertainty in the market as investors assess Bitcoin’s potential for recovery in the coming days.

In the short term, Bitcoin is likely to consolidate above $95,668, with a significant drop appearing unlikely. The ongoing hype surrounding New Year celebrations is fueling cautious optimism, preventing bearish momentum from gaining traction. 

  Bitcoin Price Analysis. Source: TradingView

A successful breach of $100,000 would mark a pivotal moment for  Bitcoin , potentially driving its price toward $105,000. Such a move could signal the start of a renewed bullish trend, attracting increased investor participation and setting the stage for further gains in the new year.

Fantom Is At A Monthly Low

Fantom’s price dropped  by 8% over the last 24 hours, marking it as the biggest loser of the day. This decline pushed the altcoin to a monthly low, raising concerns among investors about its ability to recover amid bearish market conditions.

FTM is currently trading at $0.88, positioned equidistantly between the support at $0.76 and the resistance at $1.03. The altcoin’s ability to maintain its current price range will depend on broader market sentiment and increased trading activity in the coming days.

  FTM Price Analysis. Source: TradingView

If broader market cues turn bullish, FTM could aim for the $1.03 resistance level. Flipping this into support would signal the start of a recovery, invalidating the bearish outlook of a drop to $0.76 and restoring investor confidence.