The post Why Crypto Market is Down Today? Here Are the Top Reasons appeared first on Coinpedia Fintech News
During the early London trading session on Friday, the total cryptocurrency market capitalization experienced a minor 1 percent drop, now standing at approximately $1.8 trillion. This decline wiped out the recent gains in Bitcoin that followed the FOMC announcement, leaving the bulls and bears contesting for the crucial support/resistance level around $29.1k.
Similarly, Ethereum (ETH) presented traders with uncertainty despite rallying more than 44 percent year-to-date, making many crypto traders hesitant to enter the market as the weekend and end of July approached.
Technical and On-chain Analysis
Experts in the digital asset space are predicting a sharp spike in volatility in the cryptocurrency market over the weekend. On-chain data provided by Santiment reveals a significant increase of 10k in Bitcoin supply on exchanges within the past 24 hours. Such an increase in supply is generally seen as a bearish signal, putting the bears in a favorable position against the bulls.
A bullish crypto influencer and trader has expressed optimism that Bitcoin’s price could see a classic move over the weekend. This scenario involves a potential retest of the support level at $28.3k, followed by a rebound toward $31k. However, the analyst also warned that the bears could potentially push Bitcoin’s price down to $27.1k, providing some breathing space for altcoins to rise. There’s a possibility of a synchronized momentum across the market, which could lead to a crypto capitulation event.
