Analysis: Why is the cryptocurrency market falling today?

Author: Valdrin Tahiri, beincrypto Compiler: Jinse Finance, Shan Ouba

Summary

• Total cryptocurrency market capitalization (TOTALCAP) broke below a key horizontal area and is validating the area as resistance. This could lead to further declines.
• Bitcoin (BTC) price fails to maintain momentum despite breaking out of a symmetrical triangle. It then fell below the breakout point. *Fantom (FTM) was shut out of the $0.32 horizontal resistance zone and made a higher low on July 3. Prices have since dropped.

Both Bitcoin (BTC) price and cryptocurrency market capitalization (TOTALCAP) fell below key levels yesterday, suggesting that they may have reached local highs. While Fantom (FTM) price is trending down after being rejected by a horizontal resistance zone.

The non-fungible token (NFT) market continued to shrink in the second quarter, with trading volumes down 38% and sales down 9.2%. Additionally, the number of NFT traders has also dropped significantly.

Cryptocurrency Market Cap (TOTALCAP) breaks below key support level

The cryptocurrency market capitalization (TOTALCAP) has grown since bouncing off support at $980 billion on June 15. It broke out of an ascending parallel channel on June 20 and reached a high of $1.19 trillion on July 3. This increase resulted in a breach of the $1.15 trillion resistance zone.

However, TOTALCAP failed to sustain growth and fell below the $1.15 trillion region on July 6. This is considered a bearish signal, as the breakout did not last (circled in red).

Bitcoin (BTC) price forms a bearish candlestick

Similar to TOTALCAP, BTC price appears to have broken the $30,500 resistance area on July 3. Three days later, it reached a new yearly high of $31,500. However, the price failed to keep growing, forming a bearish shooting star candlestick (red icon).

This type of candlestick chart is characterized by a very long upper shadow and a low closing price. It usually indicates that the price has reached a local top. The price then declined and settled below $30,500, an area that is now expected to provide resistance.

If BTC price falls, the closest Fibonacci support level will be at $28,900. However, if the price recaptures the $30,500 area, it could rise towards the next resistance at $33,000.

Fantom (FTM) price fails to break resistance level

Since June 10, the price of Fantom (FTM) has increased significantly. The price reached a high of $0.33 on June 25.

However, FTM failed to break above the $0.32 resistance area, resulting in a lower high formed on July 3. Prices have been dropping since then.

This movement suggests that there is selling pressure around $0.32, preventing the price from continuing higher. Lower highs can signal a shift in market sentiment, with weakening buying power, or increased selling pressure. In this case, falling prices may indicate that the market has entered a short-term correction or decline.

If the downtrend continues, the next closest support level will be at $0.20. However, if FTM price regains its footing, it could make another attempt to break the $0.32 resistance.

Since the $0.20 area is below the June 10 low, a break below this level would mean that the trend remains bearish.