Why is the crypto market falling today?

After a week of active trading as of yesterday, the market sentiment has become somewhat more cautious as investors begin to pull back, creating a gloomy atmosphere amid rising concerns.

The total market capitalization of crypto (TOTAL) and Bitcoin both recorded a slight decline over the past 24 hours, reflecting a general weakening in market momentum. The meme coin SPX is currently the strongest declining token during this period.

TOTAL is struggling to break through the resistance level

In the past 24 hours, the total crypto market capitalization has decreased by 20 billion dollars, currently standing at 3.3 trillion dollars, still struggling to break out of the narrow range it has traded in since last week.

The one-day chart shows that since July 3, TOTAL has encountered resistance at $3.35 trillion and found support at $3.27 trillion. This narrow trading range reflects the hesitation of investors, as both buying and selling pressures are not strong enough to create a clear breakout in either direction.

In the case of stronger buying force, the market could surpass the resistance level of 3.35 trillion dollars, and if this upward momentum is maintained, TOTAL may continue to climb to 3.44 trillion dollars. However, this requires a significant increase in buying activity to sustain upward pressure.

On the contrary, if pessimistic sentiment spreads and volatility increases, TOTAL may break the support level of 3.27 trillion dollars. Such a move would open up the possibility of continuing to decline further, with the next target level potentially being 3.22 trillion dollars.

Total market capitalization chart of crypto 1 day | Source: TradingView## Bitcoin slides as selling pressure increases

Bitcoin, the leading cryptocurrency, is currently trading at $108,570, down 0.2% from yesterday. However, a noteworthy point is that the daily trading volume has increased by 15%, reaching a total of $44 billion, which reinforces the view that selling pressure is rising in the market.

When the price of an asset decreases while the trading volume increases, this often indicates that many traders are panic-selling the asset, possibly due to negative sentiment, fear, or losses. If this trend continues, Bitcoin could continue to slide down to $106,295.

On the other hand, if buying pressure increases and boosts the market, the price of Bitcoin could recover and return to the level of 109,267 dollars. This change will depend on the level of participation from investors and the improvement in market sentiment.

BTC price chart 1 day | Source: TradingView## SPX6900 (SPX) lost the most in the last 24 hours

The price of SPX has dropped sharply by 8% in the past 24 hours, making it the altcoin with the largest loss during this period. On the daily chart, the Balance of Power (BoP) index of SPX is showing a continued downward trend. BoP is an indicator that measures the balance between buying and selling forces in the market over a specific period. Currently, this indicator is at -0.42, indicating that selling pressure is dominant.

When the BoP of an asset is negative, it indicates that sellers are in control of the market, pushing prices down. If this trend continues, SPX may face the possibility of a deeper decline and slipping below the $1.21 level.

However, if buying power increases and creates a wave of recovery, the price of SPX may rebound and rise to $1.35. This change will depend on whether traders have enough confidence to return to the market.

SPX price chart 1 day | Source: TradingViewAnnie