Cryptocurrency markets faced a substantial decline on May 10 and even today as the Total Crypto Market Cap (TOTALCAP) and Bitcoin and Ether are both failing to bounce back.
Evaluating TOTALCAP and Bitcoin’s Struggles
The overall cryptocurrency market cap, represented by TOTALCAP, has been on a downward path since April 14, dipping below the significant $1.16 trillion threshold. This level was confirmed as a resistance point twice, first on April 26 and again on May 6, indicating bearish sentiment in the market. Generally, such breakdowns followed by validations of resistance levels lead to even more pronounced declines.
Despite a brief bounce on May 10, the presence of long wicks on both ends of the candlestick chart suggests a lack of clear direction. If the market continues to drop, the next support area is anticipated to be around $1.03 trillion.
Bitcoin’s Recovery Hindered by False Sale Rumors
At the time of writing, BTC was trading at $27,473. The cryptocurrency experienced a sudden sell-off just a day before, momentarily dropping to $26,850 due to the unfounded claims that the U.S. government was disposing of seized Bitcoin holdings. This rumor was later debunked, but the damage was already done to the fragile crypto markets.
On a positive note for Bitcoin enthusiasts, the past 24 hours saw a significant reduction in on-chain transaction fees, which had previously reached levels that caused widespread discontent. Current data from Mempool.space indicates that next-block fee rates are at 47 satoshis per byte, or roughly $1.80.
Meanwhile, Ethereum is trading at $1,824, experiencing a period of consolidation marked by fluctuations that have yet to provide market participants with a clear directional bias.
After failing to surpass the $2.1K level, the price dropped to $1.8K and entered a consolidation phase. Ethereum now faces three critical levels: the 100-day moving average at $1,748, the 200-day moving average at $1,546 as primary supports, and the $2.1K price zone as a major resistance.
Source: https://coinpedia.org/news/why-crypto-market-is-down-today/