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Technical Analysis

Why Is the Crypto Market Down Today?

2 mins
Updated by Ryan James

In Brief

  • The Crypto Market Cap (TOTALCAP) was rejected by the resistance line of a channel and began a sharp downward movement.
  • Bitcoin (BTC) failed to break out and is now at risk of breaking down from a horizontal support area.
  • Conflux (CFX) is trading below the midline of a corrective pattern.
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The Total Crypto Market Cap (TOTALCAP) and the Bitcoin (BTC) price were rejected by important diagonal resistance areas. Conflux (CFX) is trading in the lower portion of a corrective pattern.

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Crypto Market Cap (TOTALCAP) Decreases Sharply

The TOTALCAP has decreased since deviating above the $1.17 trillion resistance area on April 14. The decrease took the shape of a descending parallel channel, which is considered a bullish pattern. As a result, the price is likely to break out from it.

However, the channel’s resistance line rejected TOTALCAP on March 29 (red icon). This caused a downward movement that accelerated on May 31. If the decrease continues, the price can fall to the channel’s support line at $1.02 trillion.

Total Market Cap (TOTALCAP) Correction
TOTALCAP Daily Chart. Source: TradingView

On the other hand, if TOTALCAP breaks out from the channel’s resistance line, an increase to $1.25 trillion will likely follow.

Bitcoin (BTC) Price Falls After Rejection

Similarly to TOTALCAP, the Bitcoin price was rejected by the resistance line of a descending parallel channel. Afterward, the decrease accelerated on May 31. The BTC price reached the $26,700 horizontal support area the next day and is currently trading inside it.

Bitcoin (BTC) Price Decrease
BTC/USDT Daily Chart. Source: TradingView

If BTC breaks down, it can fall to the channel’s support line at $24,400. However, an increase to $30,500 is likely if a bounce transpires.

Conflux (CFX) Price Falls Towards Support Line of Corrective Pattern

The CFX price has fallen inside a descending parallel channel since March 19. more recently, it bounced at the channels support line on May 12 (green icon).

The descending parallel channel is considered a bullish pattern, meaning that an eventual breakout from it is the most likely scenario. While the price began an upward movement after bouncing, it failed to clear the channel’s midline and fell below it on May 31.

So, the most likely CFX price outlook is a decrease to the channel’s support line at $0.21.

Conflux (CFX) Price Channel
CFX/USDT Daily Chart. Source: TradingView

However, reclaiming the channel’s midline will mean that the trend is still bullish. In that case, CFX could increase towards the channel’s resistance line at $0.35.

For BeInCrypto’s latest crypto market analysis, click here.


In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.