Why Is The Crypto Market Down Today?

Over the last 24 hours, the total market cap (TOTAL) and Bitcoin’s (BTC) price lost a key support level on the daily chart. While some altcoins witnessed notable rallies, many, like BONK (BONK), registered considerable drawdowns.

In the news today:-

• According to a May 28 filing with the Securities and Exchange Commission (SEC), Hashdex has withdrawn its application for a spot Ethereum ETF. The initial proposal to pull the application came on May 24, right after the SEC approved every spot ETH ETF filing.
• US Treasury Report released a risk assessment report concerning NFTs. The report highlighted that NFTs and similar assets are highly susceptible to use in fraud and scams .

The Total Market Cap Is in the Red

After days of showing signs of closing above the $2.50 trillion mark, the combined value of all crypto assets fell below it. The total market cap now stands at $2.46 trillion, the lowest point in nearly ten days.

The next critical support is at $2.39 trillion; a drawdown to this point would mean a 2.5% dip, which is possible. This is because the Ichimoku Cloud exhibits bearishness despite being below the candlesticks. 

The Ichimoku Cloud is a comprehensive technical analysis indicator that defines support and resistance, identifies trend direction, and gauges momentum. Thus, a drop to $2.39 would wipe out most of the gains the market noted on May 20.

Bitcoin’s Price Loses Key Support

Bitcoin’s price is dictating the direction of the market during intra-day trading hours, and rightfully so, it’s bearish. This is because the biggest crypto asset in the world lost the critical support level of $68,500.

The Moving Average Convergence Divergence (MACD) also changes its tone from bullish to bearish after nearly 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.

A bearish crossover is at the cusp, and if it is confirmed, BTC could fall to lows of $64,883, the next key support floor.

Bearish Cues Have Bonked BONK Investors

BONK price marked a new all-time high this week after charting a rally to $0.00004000. But right after the achievement, the meme coin fell by nearly 15% in the last 24 hours, sending BONK to $0.00003518.

While the chances of further decline are high, BONK could prevent a crash if it bounces back from the $0.000035000 support floor.

However, if this price point is lost, BONK’s price might trickle down to $0.00003000.