Why is the crypto market down today? Analysis & key levels

Crypto market in consolidation phase

Despite a decline in overall volatility, Bitcoin (BTC) and several altcoins have recorded losses in recent days. This is particularly the case for the MOVE altcoin, which has dropped 4.3% over the last 24 hours.

Beyond this decline, sector news brings its share of interesting developments. Notable mentions include the $2.5 million fine imposed on crypto platform Debiex for operating a romance scheme, as well as the Bank of Korea’s refusal to include Bitcoin in its foreign exchange reserves. All of this highlights the high volatility of the crypto king.

Total crypto market analysis. Source: TradingView

The total cryptocurrency market capitalization (TOTAL) is currently struggling to break above the $2.75 trillion mark, having lost $23 billion. This decline follows a larger pullback of $65 billion last Sunday. Now at $2.69 trillion, TOTAL is attempting to regain ground and move toward a potential bullish breakthrough.

TOTAL could very likely test the support level of $2.63 trillion before initiating a rebound. If this occurs, the market could remain in a consolidation phase below the $2.75 trillion resistance. Without a significant increase in volatility, this sideways movement could persist in the coming days, delaying any major price developments.

However, if broader market conditions improve, TOTAL could invalidate the bearish outlook. A breakthrough above $2.75 trillion would pave the way for new gains, with market capitalization potentially climbing to $2.93 trillion. This would signal a renewed investor confidence and stronger market momentum.

Bitcoin seeks to break through key level

The Bitcoin price currently sits at $83,691, maintaining above the key support of $82,761 while remaining blocked below the $85,000 mark. The king of cryptocurrencies is attempting to break through this resistance and transform it into support. This step could herald the beginning of stronger bullish momentum.

A drop below $82,761 is unlikely unless broader market conditions turn bearish. If Bitcoin fails to hold this support, it could fall to $80,000, erasing its recent gains. This would reinforce short-term bearish sentiment and delay any potential breakthrough above resistance levels.

Source: TradingView

Conversely, if Bitcoin successfully breaks through the $85,000 barrier, it could climb to $87,041. Surpassing this level would also push BTC beyond the 200-day exponential moving average, thereby invalidating the bearish outlook.

Should you buy the dip? Strategies to adopt on Bitget

While overall crypto market volatility has stabilized, Bitcoin and altcoins are still struggling to break through crucial resistance levels. The current situation appears to indicate a consolidation phase, with the possibility of a bullish recovery if certain conditions were to improve.

Is this the right time to invest in the crypto market? Crypto investors will need to remain vigilant in the coming days. Indeed, the next price movements could have a significant impact on the market’s short and medium-term dynamics.

For those looking to buy crypto, you can do so on Bitget. This is a recognized platform for cryptocurrency trading. You can make purchases in Spot, for direct buying, and in Futures, for those who want to use leverage.

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