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Why is the cryptocurrency market down today?

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Over the past 24 hours, the total market capitalization (TOTAL) and price of Bitcoin (BTC) have lost a key support level on the daily chart. While some altcoins have seen notable rises, many, such as BONK (BONK), have seen notable declines.

In today’s news:-

  • According to a May 28 filing with the Securities and Exchange Commission (SEC), Hashdex has withdrawn its application for an Ethereum spot ETF. The initial proposal to withdraw the application came on May 24, just after the SEC approved every spot deposit of the ETH ETF.
  • The US Treasury Report has released a risk assessment report related to NFTs. The report highlighted that NFTs and similar assets are highly susceptible to use in fraud and rip-offs.

The total market cap is in the red

After showing signs of closing above the $2.50 trillion mark for days, the combined value of all crypto assets fell below that mark. The total market capitalization now stands at $2.46 trillion, the lowest point in nearly ten days.

The next critical support is at $2.39 trillion; a decline to this point would mean a 2.5% decline, which is possible. This is because the Ichimoku cloud shows a bearish attitude despite being below the candles.

To know more: Top 9 Altcoin Trades in 2024

Analysis of the total market capitalization of cryptocurrencies. Source: TradingView

The Ichimoku Cloud is a comprehensive technical analysis indicator that defines support and resistance, identifies trend direction and measures momentum. Therefore, a drop to $2.39 would erase most of the gains the market saw on May 20.

Bitcoin price loses key support

The price of Bitcoin dictates the direction of the market during intraday trading hours and, rightly so, is bearish. This is because the world’s largest crypto asset has lost the critical support level of $68,500.

The moving average convergence divergence (MACD) also changes its tone from bullish to bearish after almost four weeks. The MACD is a momentum indicator that shows the relationship between two moving averages of a stock’s price and generates buy and sell signals.

To know more: What happened at the last Bitcoin halving? Forecast for 2024

Bitcoin price analysis. Source: TradingView

A bearish crossover is at its peak, and if confirmed, BTC could drop to lows of $64,883, the next key support level.

The bearish signals destroyed BONK investors

BONK price made a new all-time high this week after rallying to $0.00004000. But soon after achieving the result, the meme coin dropped nearly 15% in the past 24 hours, dropping BONK to $0.00003518.

Although the chances of a further decline are high, BONK could avoid a collapse if it recovers from the $0.000035000 support.

To know more: Airdrop Bonk Eligibility: Who Can Apply and How?

BONK Price Analysis. Source: TradingView

However, if this price is missed, BONK price could drop to as low as $0.00003000.

Disclaimer

In line with the Trust Project guidelines, this article on price analysis is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and impartial reporting, but market conditions are subject to change without notice. Always conduct your research and consult a professional before making any financial decisions. Please note that our Terms and conditions, Privacy PolicyAND Disclaimer They have been updated.

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