Why the Crypto Market is Down Today

Today, both Bitcoin (BTC) and the overall Crypto Market Cap (TOTALCAP) experienced a significant decline, marking a departure from eight consecutive weeks of bullish momentum. Notably, Fantom (FTM) managed to break out from a descending resistance trend line amid this market turbulence.

Why the Crypto Market is Down Today

The TOTALCAP exhibited a rapid increase since October, characterized by a consistent upward trajectory depicted through eight consecutive bullish weekly candlesticks. This positive movement reached its pinnacle last week, achieving a new yearly high of $1.63 trillion. Interestingly, this high closely aligned with the confluence of resistance levels around $1.60 trillion, formed by a horizontal resistance area and the 0.382 Fib retracement resistance level.

However, the $1.60 trillion resistance zone rejected TOTALCAP, as indicated by the red icon. As a consequence, TOTALCAP is currently in the process of forming a bearish weekly candlestick, marking a shift from the positive trend observed since October. The crucial factor that will determine the future trajectory is whether TOTALCAP manages to close above the $1.60 trillion resistance or resumes its downward movement.

A successful breakout beyond this resistance could potentially trigger a 20% increase, leading to the next significant resistance level at $1.87 trillion. Conversely, if the downward movement persists, a 20% drop might bring TOTALCAP to the $1.25 support level. In essence, the coming days will be instrumental in understanding whether the recent market dynamics are indicative of a temporary correction or a more sustained shift in trend.