Why Did the Cryptocurrency Market Drop Today?

The prices of several major cryptocurrencies have broadly fallen today. Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), and other digital assets have decreased by 1% to 9% in the past 24 hours. The total crypto market has lost 2.66% of its value and is currently at $3.33 trillion. The Trading Volume increased by 7.21%, indicating that there are more buyers and sellers during this downturn. The main reason behind this fall seems to be the changing sentiment around Bitcoin and Ethereum. Analysts are pointing to several bearish chart signals and signs that the recent bullish momentum may be waning. The price of Bitcoin has fallen from the main support zone. Crypto Express reports that the price of BTC has fallen below the descending triangle pattern on the 4-hour chart. Bitcoin has attempted multiple times to hold above the $107,000 level but has been unable to maintain that level. The price has broken below the support line and is currently struggling to return to the range of $106,800–$107,300, which has now become a resistance zone.

This incident occurs under the Ichimoku Cloud, acting as a resistance barrier. The confluence of resistance at the descending trend line and the cloud is strengthening the bearish setup. Unless Bitcoin quickly reclaims the $107,500–$108,000 level, the chart indicates the possibility of the price falling to $104,000, $102,500, or even $100,000. Top crypto analyst Seth has added that BTC has just triggered its first 4-hour sell signal since April. His chart emphasizes that the rejection from the fluctuating high of 112,000 dollars has now opened up the liquidity zone between 102,000 dollars and 103,000 dollars, a zone that may be tested next.

He also noted that retail traders are currently selling net, which could facilitate short selling if the price of BTC recovers.

Ethereum price falls back after recovering trend line Ethereum has also fallen in price after its recent breakout on its long-term downtrend line. As Income Sharks on X shows, the price of ETH has maintained support at $2,700–$2,800 after the breakout and is currently consolidating below $2,950. Despite the pullback, the structure remains bullish unless the price loses the support level at $2,700. The ETH chart outlines a potential upward move, with $3,000 and $4,000 as the next major targets if the uptrend continues. So far, ETH remains above its key breakout area, which many traders are closely monitoring. The recent fall appears to be a healthy correction unless the asset breaks below the support level of $2,700.

Short-term sentiment has cooled across the market The short-term sentiment across the entire crypto market is showing signs of fatigue. After several weeks of price increases, the market is currently pausing, due to a technical rejection at resistance levels. Both BTC and ETH are still well above the lows of 2024, but traders are now closely monitoring key support areas to assess the strength of the trend. The behavior of Bitcoin around the $102,000–$107,000 level and the ability to hold $2,700 for Ethereum may determine whether the market continues its upward trend or enters a deeper correction. With retail positions leaning towards short selling and increased volatility, the next few sessions could provide clearer information about the market's direction.