Markets
Why is the crypto market down today?
Over the past 24 hours, the total market capitalization (TOTAL) and price of Bitcoin (BTC) lost a key support level on the daily chart. While some altcoins have seen notable rallies, many, like BONK (BONK), have seen considerable declines.
In the news today: –
- According to a May 28 filing with the Securities and Exchange Commission (SEC), Hashdex has withdrawn its application for an Ethereum spot ETF.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 was presented on May 24, just after the SEC approved each one-time ETH ETF filing.
- The US Treasury report released a risk assessment report regarding NFTs. The report highlighted that NFTs and similar assets are highly susceptible to being used for fraudulent purposes and scams.
Total market capitalization is in the red
After days of signs of closing above the $2.50 trillion mark, the combined value of all crypto assets has fallen below. The total market capitalization now stands at $2.46 trillion, the lowest point in almost ten days.
The next critical support is $2.39 trillion; a drop to that point would result in a 2.5% drop, which is possible. Indeed, the Ichimoku cloud presents a bearish trend although it is below the candlesticks.
Learn more: 9 Best Altcoin Exchanges in 2024
Analysis of the total market capitalization of cryptocurrencies. Source: Trading View
The Ichimoku Cloud is a comprehensive technical analysis indicator that defines support and resistance, identifies trend direction, and assesses momentum. Thus, a drop to $2.39 would erase most of the gains seen by the market on May 20.
Bitcoin price loses key support
Bitcoin price dictates market direction during intraday trading hours and rightly so, it is bearish. Indeed, the world’s largest crypto asset lost the critical support level of $68,500.
The Moving Average Convergence Divergence (MACD) is also changing 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 security’s price and generates buy and sell signals.
Learn more: What happened in the last Bitcoin halving? Predictions for 2024
A bearish crossover is on the horizon, and if confirmed, BTC could fall to a low of $64,883, the next key support floor.
Bearish Indices Discouraged BONK Investors
BONK price hit a new all-time high this week after hitting $0.00004000. But right after this feat, the meme coin fell almost 15% in the last 24 hours, sending BONK to $0.00003518.
Although the chances of further decline are high, BONK could prevent a crash if it rebounds from the $0.000035000 support floor.
Learn more: Bonk Airdrop Eligibility: Who Can Claim and How?
However, if this price level is lost, BONK price could fall to $0.00003000.
Disclaimer
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