Why the Crypto Market Is Down Today

by CryptoExpert


Market activity has continued to decline, as evidenced by the drop in the total crypto market cap (TOTAL) over the past 24 hours. The leading crypto, Bitcoin (BTC), has mirrored this trend with a 1% price decrease. Also, heightened profit-taking has triggered a double-digit drop in ApeCoin’s (APE) value.

In the news today:

TOTAL Falls Further As “Greed” Turns Traders Away

Trading activity in the crypto market has continued to plunge. Over the past 24 hours, the total crypto market capitalization has dropped by $22 billion to stand at $2.26 trillion at press time. 

This decline in market capitalization comes amid heightened market greed, as indicated by the Crypto Fear and Greed Index. While this is often a bullish indicator, it can also trigger caution in some traders who fear an imminent market correction, leading them to trade less. Some traders may see high greed levels as a warning sign that the market is overheated and prone to a downturn, causing them to hold back.

Read more: 11 Cryptos To Add To Your Portfolio Before Altcoin Season

Total Crypto Market Cap Analysis. Source: TradingView

At $2.26 trillion, TOTAL sits just above support formed at $2.20 trillion. If market participants become increasingly cautious and continue to trade less, TOTAL may fall toward this support line. If this level fails to hold, it may decline to $2.08 trillion. 

Should traders become less cautious, and trading activity picks up, TOTAL could make an attempt to break through the resistance at $2.32 trillion. A successful breakout above this level would pave the way for TOTAL to climb toward $2.50 trillion, a level last seen in June.

Bitcoin Sees Gradual Surge in Selling Activity

Bitcoin currently trades at $67,134, having shed 1% of its value over the past 24 hours. The downward trend in the coin’s Relative Strength Index (RSI) confirms the uptick in selling pressure in the market. 

This indicator measures an asset’s overbought and oversold market conditions. As of this writing, BTC’s RSI is 60.22.

This RSI reading typically indicates a bullish trend, but the downward trajectory shows that buying pressure may be weakening. Traders might see this as a potential signal of an upcoming shift or correction, especially if the RSI continues to fall.

Read more: Bitcoin Halving History: Everything You Need To Know

Bitcoin Price Analysis.
Bitcoin Price Analysis. Source: TradingView

If buying pressure continues to weaken, Bitcoin’s price is likely to retest support at $64,321. Failure to hold this level could trigger a decline, pushing the price down to the next key support at $61,388.

However, a resurgence in buying activity would invalidate this bearish outlook. If Bitcoin experiences a strong accumulation, it could challenge the key resistance at $68,474, potentially setting the stage for a rally toward $73,777.

ApeCoin Begins To Shed Gains

Following a 100% price hike after the ApeChain launch, APE has begun to shed some of its recent gains. Trading at $1.28 as of this writing, the altcoin has noted a 15% decline over the past 24 hours. 

The token’s negative Balance of Power (BoP) confirms the uptick in selling pressure. This indicator, which measures the strength of buyers versus sellers in the market, is at -0.81 at press time. A negative BoP suggests sellers are in control and attempting to push the asset’s price downward. 

ApeCoin Price Analysis
ApeCoin Price Analysis. Source: TradingView

If this trend persists, APE’s price may drop to its August 5 low of $0.47. On the other hand, the altcoin may attempt a rally toward $1.84 if buying activity returns to the market, which would invalidate the current bearish thesis.

Disclaimer

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



Source link

You may also like