Why Is the Crypto Market Down Today?

The crypto market cap (TOTAL) and Bitcoin (BTC) are stabilizing despite declining slightly over the last 24 hours. Altcoins did not fall much on the daily chart either, with Story (IP) taking the biggest hit, falling by 8%.

In the news today:-

• The SEC is reportedly considering reclassifying XRP as a commodity, drawing comparisons to ETH’s past reclassification. Meanwhile, Vermont regulators dropped their suit against Coinbase, citing the SEC’s new Crypto Task Force, potentially setting a precedent that could benefit Ripple.
• ARENA, El Salvador’s largest opposition party, criticized President Bukele over an IMF deal, warning that his refusal to halt Bitcoin purchases could jeopardize the country’s economic stability. Despite the criticism, ARENA’s recent election losses have left it largely powerless to influence Bukele’s policy decisions.

The Crypto Market Is Holding Above Crucial Support

The total crypto market cap (TOTAL) has fallen by $40 billion in the last 24 hours, currently standing at $2.63 trillion. This decline has brought the market close to the critical support level of $2.58 trillion. The ability to hold this support is key for any recovery.

If macro-financial conditions improve and investor sentiment shifts, TOTAL could bounce back. A successful move above $2.75 trillion would signal the start of a recovery, but this would require strong support from investors to maintain upward momentum. Such a move could restore confidence in the market.

Total Crypto Market Cap Analysis. Source: TradingView

However, if the crypto market cap loses the $2.58 trillion support, the market could slide further, reaching $2.50 trillion. This would extend the losses for investors, potentially deepening the ongoing bearish trend and making a swift recovery more difficult. The support at $2.58 trillion remains crucial for preventing further declines.

Bitcoin Is Yet To Break Out

Bitcoin’s price failed to rise above $84,000 in the last 24 hours, falling to $80,000 during the intra-day lows. However, BTC managed to recover slightly and is currently trading at $81,978. The price remains under pressure, with investors hoping for a clear breakout to regain upward momentum.

To regain confidence, Bitcoin’s target is to flip $82,761 into support and eventually breach the $85,000 barrier. A successful breakout could propel the price toward $87,041, boosting investor sentiment and signaling a potential recovery. Strong support at $82,761 will be crucial for this upward movement.

Bitcoin Price Analysis. Source: TradingView

However, if Bitcoin fails to breach $82,761, it may continue to consolidate above $80,000. A failure to hold this support could lead to further declines, with the price possibly sliding to $76,741. This would extend the ongoing losses and challenge the outlook for Bitcoin’s short-term recovery.

Story Declines But Finds Support

IP price is down by 8% over the last 24 hours, currently holding above the support level of $5.71, trading at $5.78. Despite the recent decline, the altcoin shows potential for recovery. Maintaining support could provide the foundation for a future price rebound, depending on market sentiment.

The key target for IP is $7.07. Successfully breaching this resistance level could allow the altcoin to move toward its all-time high (ATH) of $8.99. However, this will require sustained investor confidence and minimal selling pressure to push the price to new heights.

IP Price Analysis. Source: TradingView

If IP fails to breach $7.07, it may continue consolidating between this resistance and the $5.71 support level. This sideways movement would delay any meaningful recovery, keeping the altcoin trapped within its current range.