Why is crypto down today? How Bitcoin’s fall affected the market

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The crypto market capitalization lost 0.8% over the previous day. An 8% trading volume spike came alongside sell pressure.

The total market capitalization decreased by 0.8% over the past 24 hours, sitting at $2.06 trillion at press time.‘ data showed $221.9 million worth of liquidations over the previous day, with the largest of them on Binance on the BTCUSDT pair for $10.81 million.Prices are attracted to liquidity, and Bitcoin’s movements generally govern crypto market-wide trends. Over the past week, a considerable cluster of liquidity has built up at the $57.4k level.

Understanding Bitcoin and its price trends can help explain why the crypto market is down or up on any given day.Bitcoin has a bearish market structure. As we have seen, most major altcoins also have a short-term bearish trajectory. This meant that we would likely move downward till the 19th of August.

A reversal thereafter might be possible, but it also depends on new developments not affecting the sentiment too negatively. The bearish momentum of Bitcoin and a lack of buying pressure meant that the crypto market and BTC are likely to go down further.Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis.

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