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Why Crypto Market is Down Today? Here Are the Top Reasons

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.

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