Why Is the Crypto Market Down Today?

full version at beincrypto

The crypto market is cooling down following the recent rally, even as the total market cap (TOTAL) and Bitcoin’s (BTC) price are noting long-term bullishness. Among altcoins, dogwifhat (WIF) is noting the largest decline.

In the news today:

Grayscale withdrew its Ethereum Futures ETF application less than a month before the Securities and Exchange Commission (SEC) was scheduled to decide.
Susquehanna International Group adds $1B in Bitcoin ETFs to its portfolio in Q1 2024 in various funds, including Grayscale Bitcoin Trust (GBTC), Fidelity Wise Origin Bitcoin Fund (FBTC), etc.

Total Market Cap Breaks Out of Bullish Pattern

The total crypto market capitalization is currently in the process of securing a breakout from the descending triangle reversal pattern. This pattern forms with a flat support line and lower highs, signaling a potential bullish reversal when the price breaks above the upper trendline with increasing volume.

At $2.24 trillion, total crypto market capitalization could note a minor decline to $2.20 trillion or lower to test the falling trend line as support.

Total Market Cap Price Analysis. Source: TradingView

However, if total crypto market capitalization notes a reversal and successfully breaches the resistance at $2.3 trillion, it could continue its recovery.

Bitcoin Fails Another Potential Breakout

Bitcoin’s (BTC) price is currently stuck within a flag pattern after failing to breach the flag’s upper trend line. A flag pattern emerges as a brief consolidation after a strong price move, presenting a continuation signal when the price breaks out in the direction of the initial trend.

At the time of writing, the cryptocurrency is above the $61,846 support level, which it will likely test. But if this support is lost, BTC could end up testing the flag’s lower trend line.

Bitcoin Price Analysis. Source: TradingView

On the other hand, if Bitcoin’s price bounces back from $61,846, a potential breakout from the pattern could be observed. This would place BTC on the path to reclaiming $68,500.

Dogwifhat Falls Below $3 Again

Dogwifhat (WIF) price, over the past 24 hours, fell below the $3.18 support level, noting a 12% decline. This is due to the waning bullishness in the market in the past day. This could send the meme coin towards the support of $2.72.