Why did the crypto market fall sharply today?

The total cryptocurrency market capitalization (TOTAL) has fallen by 32 billion dollars, while Bitcoin cannot hold the support level of 108,000 dollars. Regarding altcoins, SPX6900 (SPX) has become the hardest-hit altcoin today, with a decrease of more than 11.8%.

Notable news of the day:

– Spain: Authorities have arrested 5 members of an international fraud ring, accused of embezzling up to 540 million dollars from victims in over 30 countries. There is still not much detailed information about the group's modus operandi, and it is unclear if there are any other members still at large.

– USA: Senator Cynthia Lummis is pushing for amendments to the law aimed at reducing taxes for crypto miners, as part of the important bill plan "Big Beautiful Bill" supported by the White House. However, last-minute adjustments could include provisions against crypto or renewable energy, leaving the future of these changes uncertain.

The crypto market is drowning in red

The total market capitalization of crypto has fallen by 32 billion dollars in the past 24 hours, indicating a cooling period after a recent surge. Currently, the total market capitalization stands at 3.31 trillion dollars, pausing the upward trend that occurred earlier in the week. This development is creating skepticism and a cautious sentiment among investors.

TOTAL is currently holding steady above the support level of 3.26 trillion dollars. Although the likelihood of breaking this support level is low, if it occurs, it could trigger a deeper fall, pulling the market value down to the 3.21 trillion dollar range. Investors are closely monitoring this support level for any signs of weakness across the entire market.

Analysis of total crypto market capitalization | Source: TradingViewIf TOTAL can maintain its upward momentum from the support level of 3.26 trillion dollars, this could pave the way for a recovery in the crypto market. In the event that TOTAL surpasses the resistance level of 3.31 trillion dollars, that would be a signal that the upward trend is returning.

Bitcoin struggles to hold support

The price of Bitcoin is currently at $107,017 after failing to hold the support level of $108,000. This coin is under pressure and may continue to fall if the bearish momentum persists. The next support level to watch is $105,622 — where BTC could find a balance point or continue the downward trend.

Despite the recent fall, BTC still shows resilience around the support level of $105,622. In the past, the price has often bounced back from this level. However, if the overall market conditions continue to deteriorate, the likelihood of BTC dropping below the $105,000 mark will increase.

Bitcoin Price Chart | Source: TradingViewThe RSI indicator shows that the upward momentum still exists, meaning that Bitcoin still has room to recover. If the price can break back above the $108,000 mark, this will reinforce the positive outlook. In the event that BTC regains this level and turns it into support, the current bearish argument will be invalidated.

SPX6900 continues to face pressure from strong fluctuations

The price of SPX6900 has fallen 11.8% in the past 24 hours and is currently trading at $1.16. This memecoin is experiencing a period of significant volatility in recent days and has yet to find stability. The current decline reflects the overall instability of the market, causing the performance of SPX6900 to weaken over the past week.

Due to the impact of fluctuations, SPX6900 could not hold the support area of 1.25 dollars and is currently approaching the important support level of 1.14 dollars. If this support level is broken, SPX6900 may continue to plunge down to 0.98 dollars – a signal that the downtrend may still be present. Therefore, investors are closely monitoring for clues about the possibility of a reversal.

Analysis of SPX 6900 price | Source: TradingViewHowever, the Parabolic SAR indicator is below the price candles, signaling a potential upward trend. This suggests that SPX6900 could bounce back if it successfully turns the $1.25 level into support. If a successful reversal occurs, SPX6900 will rise to the $1.42 area – thereby negating the current bearish scenario and marking the recovery potential of this coin.

Dinh Dinh