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Why is the crypto market bearish today?

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Over the past 24 hours, the total market cap (TOTAL) and price of Bitcoin (BTC) have lost an important support level on the daily chart. While some altcoins have witnessed notable rallies, many, like BONK (BONK), have seen considerable declines.

In today’s news:-

  • According to a May 28 filing with the Securities and Exchange Commission (SEC), Hashdex withdrew its application for a spot Ethereum ETF. The initial proposal to withdraw the application came on May 24, shortly after the SEC approved all ETH spot ETF applications.
  • 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 in fraud and scams.

Total market value is in the red

After days showing signs of closing above the $2.50 trillion mark, the combined value of all crypto assets has fallen below it. The total market capitalization is now $2.46 billion, the lowest point in almost ten days.

The next critical support is $2.39 billion; a downgrade to this point would mean a 2.5% drop, which is possible. This is because the Ichimoku Cloud displays bearishness despite being below the candles.

See more information: 9 Best Altcoin Exchanges in 2024

Full analysis of crypto market value. Source: Trading View

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

Bitcoin Price Loses Key Support

The price of Bitcoin is dictating the direction of the market during intraday trading hours, and rightly so, it is bearish. This is because the world’s largest crypto asset has lost the critical support level of $68,500.

The Moving Average Convergence Divergence (MACD) also changes its 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.

See more information: What happened in the last Bitcoin halving? Predictions for 2024

Bitcoin price analysis. Source: Trading View

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

Bearish signals hampered BONK investors

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

Although the chances of a further decline are high, BONK could avoid a decline if it recovers from the $0.000035000 support floor.

See more information: Bonk Airdrop Eligibility: Who Can Claim and How?

BONK Price Analysis. Source: Trading View

However, if this price is lost, BONK price could drop to $0.00003000.

Disclaimer

In line with the Confidence 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 and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our Terms and conditions, Privacy PolicyIt is Disclaimers have been updated.

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