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Why Is the Crypto Market Down Today?
In the last 24 hours, the cryptocurrency market has seen a significant downturn, marking a sharp shift after a period of relative stability. Both the total market capitalization (TOTAL) and Bitcoin (BTC) have recorded declines, with Layer-1 token Aptos (APT) leading the market in losses.
This decline comes as investor sentiment appears to be shifting, bringing the broader cryptocurrency market under pressure. While there have been some recent successes, such as Bitcoin surpassing gold as the top financial asset in the ETF market, the overall market is struggling.
Total Crypto Market Loses $101 Billion
The total crypto market capitalization has dropped by $101 billion, bringing TOTAL to $3.54 trillion, a figure that hovers just above the support level of $3.48 trillion. If selling pressure continues, the market could face further declines, potentially testing the next support level at $3.25 trillion.
Indicators such as the Balance of Power (BoP) have turned negative, signaling that selling pressure currently outweighs buying demand. TOTAL’s BoP stands at -0.73, a strong bearish indicator. If this trend persists, the market could see further downside.
On the other hand, if buyers return to the market, TOTAL could recover and attempt to reach its previous all-time high of $3.73 trillion.
Bitcoin Under Pressure: Could BTC Fall Below $100,000?
Bitcoin (BTC) has been trading at $103,613, down 3% in the past 24 hours and 4% off its recent all-time high of $108,353, recorded just a few days ago. To maintain its upward momentum, Bitcoin needs to flip this recent peak into a support level. If it can successfully hold above this level, BTC could push toward a new all-time high, potentially surpassing the $110,000 mark.
However, if the current selloff continues, Bitcoin risks falling below the $100,000 threshold. A continued drop could signal further weakness in the market.
Aptos (APT) Leads the Market Decline
Aptos (APT) has been one of the market’s top performers in recent weeks, reaching a multi-month high of $15.33. However, in the past 24 hours, APT has experienced a sharp decline, losing 10% of its value and leading the market downturn.
If the current downtrend continues, APT’s price could fall to $11.12. On the upside, if buyers return to the market, APT could reverse its losses and push toward the resistance level of $12.97, with the potential to revisit its nine-month high of $15.33.
Market Outlook: What’s Next for Crypto?
While the recent decline has raised concerns, it’s too early to declare a full-fledged bear market. If buying pressure returns and key support levels hold, the market could rebound and recover lost ground. However, traders should remain cautious, as bearish signals continue to dominate in the short term.
The market’s performance over the coming days will be critical in determining whether this downturn is just a temporary correction or the beginning of a more extended bearish trend.
