Why Is the Crypto Market Down Today?

The total crypto market cap (TOTAL) and Bitcoin (BTC) showed signs of an increase on Tuesday before losing to bearish cues. Meme coin POPCAT took the biggest hit among top altcoins as it fell by 8% despite forming a new all-time high yesterday.

In the news today:

• The Delaware District Bankruptcy Court approved FTX’s asset compensation plan, allowing 98% of creditors to receive up to 118% of their requested assets. Payments are expected to start within 60 days, totaling between $14.7 billion and $16.5 billion.
  
• 21Shares urged the European Securities and Markets Authority (ESMA) to revise its rules to include crypto assets in Undertakings for Collective Investment in Transferable Securities (UCITS) funds. This adjustment would enable retail investors to access crypto assets through ETPs and ETFs.

The Crypto Market Slows Down

The total crypto market cap saw an intra-day rise, adding nearly $76 billion before succumbing to bearish macroeconomic factors. This brief surge brought the market cap near its recent highs, but TOTAL faced a pullback toward the $2.11 trillion support level. 

The $2.11 trillion level has historically served as both resistance and support for the total crypto market cap. If TOTAL holds above this critical point, it could maintain its upward momentum. 

Read More: 11 Cryptos To Add To Your Portfolio Before Altcoin Season

Should the market cap fall below the $2.11 trillion support, a drop toward $2.00 trillion is likely. This downward shift would significantly damage investor sentiment, possibly leading to a broader market correction. 

Bitcoin Almost Makes It to $65,000

Bitcoin’s price remains resilient, holding above the crucial support level of $61,868 this week. Currently trading at $62,744, the cryptocurrency attempted to break past the $65,000 mark during yesterday’s intra-day high but fell short of sustaining the momentum. Despite this, Bitcoin continues to show strength as it consolidates above support.

The key target for Bitcoin remains at $65,292, a critical resistance level. A sustained upward push in the price over the next few trading sessions could help break this barrier, further solidifying Bitcoin’s bullish momentum.

Read more: Bitcoin Halving History: Everything You Need To Know

On the downside, losing the $61,868 support could trigger a sharper correction. This decline may push the price closer to the $60,000 mark, which would invalidate the current bullish outlook.

POPCAT Forms New All-Time High

POPCAT experienced its first bearish day on Tuesday after an impressive bullish streak, dropping by 8% in the last 24 hours to trade at $1.25. This sudden decline caught some investors by surprise, though the meme coin had already shown substantial gains earlier in the week.

Despite the pullback, POPCAT set a new all-time high of $1.48 yesterday. This milestone highlights the meme coin’s volatile nature, with investors still optimistic about potential future gains.

Read More: 11 Top Solana Meme Coins to Watch in October 2024

The next critical support for POPCAT stands at $1.00. A drop to this level is possible if the bearish trend continues. However, if the broader cryptocurrency market shifts towards a bullish outlook, POPCAT could resume its upward trajectory, potentially breaking through previous highs and establishing new all-time records.