Why Is the Crypto Market Down Today?

The Total Crypto Market Cap (TOTALCAP) deviated above its range high. Bitcoin (BTC) trades in a descending parallel channel. Trust Wallet Token (TWT) broke out from a descending resistance line.

In the news, the Binance exchange and its CEO Changpeng Zhao are facing a $1 billion class-action lawsuit filed by the Moscowitz Law Firm and Boies Schiller Flexner.

Crypto Market Cap (TOTALCAP) Deviates Above Range High

Starting from March 14, the TOTALCAP has been varying between $1.09 trillion and $1.16 trillion. The upper limit (indicated by red icons) and the lower limit have been confirmed multiple times.

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On April 5, the TOTALCAP went beyond the upper limit of the range. However, it promptly fell back below it. If it manages to close above this level, it may increase and reach $1.30 trillion.

On the other hand, if it is not able to surpass this level, it may experience a decline toward the support level of $1.09 trillion.

TOTALCAP/USDT Daily Chart. Source: TradingView

Bitcoin (BTC) Trades in Corrective Pattern

The Bitcoin price has decreased inside a descending parallel channel since March 29. Such channels usually contain corrective patterns, meaning that an eventual breakout from it would be expected.

If that occurs, the BTC price could increase to $32,000. However, if a rejection follows instead, BTC could fall to the $26,800 support area again.

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BTC/USDT Daily Chart. Source: TradingView

Trust Wallet Token (TWT) Fails to Clear Resistance

The TWT price broke out from a descending resistance line on March 30. While it increased afterward, it failed to move above the $1.28 horizontal resistance area, instead creating a long upper wick.

If the price successfully breaks out, it could increase to $1.55. However, if the rejection continues, TWT could drop to the $1.10 area again.

TWT/USDT Daily Chart. Source: TradingView
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Disclaimer

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.