Why Is the Crypto Market Down Today?

The total crypto market (TOTAL) and Bitcoin (BTC) noted minimal declines over the last 24 hours. Holding above the crucial support level, BTC is safe from noting a sharp decline; however, Artificial Superintelligence Alliance (FET) did note a 10% drop over the last 24 hours.

In the news today:-

• Bitget is pursuing legal action against eight accounts accused of manipulating VOXEL token trading and profiting over $20 million. The exchange plans to airdrop any recovered funds back to its users.
• Ethereum researcher Dankrad Feist proposed EIP-9698 to gradually increase the mainnet’s gas limit 100-fold, potentially reaching 2,000 transactions per second. The upgrade would start around June 1 and unfold over about two years.

The Crypto Market Is Holding On

The total crypto market cap has declined by nearly $30 billion in the past 24 hours, now standing at $2.89 trillion. TOTAL is currently wedged between the key support level of $2.87 trillion and the resistance at $2.93 trillion. The market is holding steady despite the recent dip.

At the moment, TOTAL is not showing signs of a major momentum shift. Instead, the market appears to be cooling down rather than entering a crash. If TOTAL maintains its position above $2.87 trillion, it can avoid deeper losses.

However, a drop could push the market cap down toward $2.80 trillion.

Total Crypto Market Cap Analysis. Source: TradingView

Conversely, a successful bounce off $2.87 trillion, followed by a rise past $2.89 trillion, would be a bullish signal. Such a move would set the total crypto market cap on a strong path toward reclaiming the $3.00 trillion mark.

Bitcoin Is Cooling Down

Bitcoin is trading at $93,726, maintaining strength above the critical support level of $93,625. The cryptocurrency is attempting to bounce off this support and push past the $95,668 resistance. Current market conditions suggest steady momentum, with Bitcoin poised for a potential upside if buying pressure continues to build.

The likelihood of a significant decline appears limited at this stage. However, should Bitcoin face downward pressure, it is expected to find strong support at $91,581 and $89,800. These levels could help stabilize the price and break any potential drawdown.

Bitcoin Price Analysis. Source: TradingView

Bitcoin could successfully breach the $95,668 resistance level if market conditions turn bullish. A sustained breakout would pave the way for BTC to reach $98,000. Such a move would invalidate the bearish outlook.

Artificial Superintelligence Alliance is Still Doing Alright

FET has avoided a sharp drop today, falling by less than 10% over the past 24 hours. Currently trading at $0.707, the altcoin is undergoing a healthy cooldown after its strong rally this month. This stabilization hints at cautious optimism among investors despite broader market fluctuations.

The next major support for FET is $0.641, a level that could be tested if investors choose to secure profits. After three weeks of consistent gains, some selling pressure is expected. A drop in this support would not necessarily signal a complete trend reversal but warrants careful observation.

FET Price Analysis. Source: TradingView

If investors decide to HODL and broader market conditions improve, FET could break above $0.775. A successful rally past this resistance would set the altcoin on course to reach $0.901. Surpassing these levels would invalidate the current bearish outlook