Why Is the Crypto Market Down Today?

Crypto market dips but Bitcoin finds support, Ethereum eyes breakout, Lido, Tron, and Chiliz show potential for rallies.
Why Is the Crypto Market Down Today?

Key Insights

  • The crypto market declined by 1.2%, with Bitcoin falling further below $64,000 in the last 24 hours.

  • Despite the drop, Bitcoin has found support around $62,000 and might rebound to $67,000.

  • Ethereum is struggling to break above $3,100, but a successful rebound could signal a breakout.

  • Lido might double in price soon based on its chart pattern.

  • Tron could rally to $0.144 if it breaks and closes above $0.12.

  • Chiliz's rally might continue if it breaks above the resistance at $0.13.

The crypto market has declined by another 1.2% today, bringing the total market cap down to around $2.31 trillion.

As it was yesterday, the crypto market remains almost completely red, with even Solana and Avalanche—which were green yesterday—turning red.

<div class="paragraphs"><p>The crypto heatmap</p></div>

The crypto heatmap

Bitcoin has declined further below $64,000 and now trades at around $62,600. However, somehow, the crypto liquidations are less harsh than they were yesterday, with around $138 million taken from leveraged traders across the board.

<div class="paragraphs"><p>The crypto liquidation heatmap</p></div>

The crypto liquidation heatmap

As expected, the bulls suffered the worst of the liquidations, losing around $107 million of the total and leaving the bears with around $30 billion.

From all of the above, we can see that the power struggle between the bulls and bears remains active, and the market is in a period of consolidation from here.

How Long Can the Bulls Hold Bitcoin?

Bitcoin seems to be doing pretty well above the $62,000 zone, despite the decline in the last 24 hours.

<div class="paragraphs"><p>Bitcoin’s price action</p></div>

Bitcoin’s price action

As shown above, Bitcoin’s bulls managed to catch the cryptocurrency right around $62,111 yesterday, and are about to send it into a rebound from here.

So far, all metrics on Bitcoin look good, and as long as a break below $62,000 doesn’t occur, we are set to see a rebound that takes Bitcoin straight to $67,000 at least.

Ethereum Is Still Under $3,100

Ethereum has spent another day underneath the $3,100 zone but is attempting a rebound from here, at around $2,998 ($3,000).

<div class="paragraphs"><p>Ethereum’s price action</p></div>

Ethereum’s price action

If this rebound on Ethereum is successful, it would count as the next higher high from 1 May's $2,817 low and might propel Ethereum straight into a break out of the formation above.

Overall, the $3,100 zone remains crucial, and an Ethereum rebound from here is invalid until we see the cryptocurrency trade above this level.

Massive Rally Ever on Lido

According to the weekly chart below, Lido is fully poised to double in price very soon.

<div class="paragraphs"><p>Lido in the charts</p></div>

Lido in the charts

Ever since 2022, the cryptocurrency has been trading inside an ascending triangle as shown above, and has always rebounded off the ascending trendline at the base of the formation.

This time around, the cryptocurrency is attempting something similar and could be poised to rebound from here and double in price over the next few weeks, from its current $1.966 to around $3.9.

Tron Is Poised for Something Huge

As shown in the chart below, TRX broke above the falling wedge shown and is now attempting a post-breakout consolidation.

<div class="paragraphs"><p>Tron’s price action</p></div>

Tron’s price action

As illustrated, we can see that the medium-term moving average Is doing a pretty good job at supporting the cryptocurrency, helping it to rebound off the $0.11821 zone.

If the bulls continue to push further and Tron breaks and closes above the $0.12 zone, we just might see a resulting rally that takes the cryptocurrency to $0.144.

Chiliz Is Poised to Continue Further

The chart illustrates that Chiliz broke above the $0.116 resistance on 2 May and has been rallying further upwards ever since.

<div class="paragraphs"><p>Chiliz in the charts</p></div>

Chiliz in the charts

The charts, however, show that the cryptocurrency is facing a bit of resistance somewhere around $0.13, where the previous local high from 24 April sits.

Investors should keep an eye out for this $0.13 zone and what happens around it, because a break and close above might result in a continuation of the cryptocurrency's multi-month rally.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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