Why Is the Crypto Market Up Today?

The total crypto market cap (TOTAL) saw little growth today but managed to avoid a correction. Bitcoin (BTC) remains above $82,500 after failing to break the $85,000 barrier. Meanwhile, Cosmos (ATOM) capitalized on the low volatility, posting a 13% increase in the last 24 hours.

In the news today:-

• Ethereum’s Pectra upgrade has been scheduled to arrive on the mainnet on May 7. The upgrade aims to resolve network congestion and high gas fees and enhance interoperability between Ethereum’s execution and consensus layers.
• Onchain data from Arkham Intelligence shows that major Bitcoin ETF issuers are acquiring significant amounts of BTC, with $220 million in net inflows. Despite recent volatility, institutional investors appear to have more confidence in Bitcoin than in traditional financial markets.

The Crypto Market Is Strong

The total crypto market cap currently stands at $2.61 trillion, losing the gains made over the past day. This zero-sum market action still seems to instill bullish sentiment among investors. The market is cautious, with a balance between potential growth and the risk of further declines.

If TOTAL manages to bounce off the support of $2.61 trillion, it could rise towards $2.74 trillion. Breaching this resistance could pave the way for further gains, potentially driving the market cap up to $2.85 trillion.

Total Crypto Market Cap Analysis. Source: TradingView

However, if the support of $2.61 trillion fails, TOTAL could see a decline towards $2.50 trillion. A break below this level would likely trigger more losses, pushing investors back into negative territory.

Bitcoin is Holding Above Key Support

Bitcoin’s price is currently holding above the support of $82,503 but is struggling to breach the $85,000 resistance. This short-term target is crucial for BTC to regain upward momentum and potentially reach $90,000.

Should the current stability persist, Bitcoin could bounce back and breach the $85,000 resistance. Successfully surpassing this level would likely propel BTC towards $86,822, a significant barrier that has held for nearly a month. This breakout could spark a rally and further boost investor sentiment.

Bitcoin Price Analysis. Source: TradingView

However, if Bitcoin loses support at $82,503, the price could dip to $80,000. A break below this psychological support level would indicate further weakness, potentially sending Bitcoin down to $76,741. This decline could increase selling pressure and negatively impact market sentiment.

Cosmos Registers A Jump

ATOM price is up by 13.6% over the last 24 hours, trading at $4.78, but it remains stuck under the $4.95 resistance. This resistance has been a consistent challenge for more than six weeks. Investors are watching closely to see if ATOM can finally breach this key level.

If ATOM successfully breaks past the $4.95 resistance, it could surge towards $5.27. A successful push beyond $5.00 and securing $4.95 as support would solidify gains, encouraging further buying activity. This move could mark the start of a more sustained upward trend for the altcoin.

ATOM Price Analysis. Source: TradingView

However, if ATOM fails to break $4.95, the price may continue its downward trend. This could lead to a drop back to $4.57, maintaining the ongoing pattern. Such a failure would likely invalidate the bullish outlook, causing investors to reassess their positions.