The crypto market just shed $43 billion in 24 hours. Bitcoin couldn’t hold $70,000. Fear gripped traders across every exchange.
This wasn’t a flash crash or single event. Instead, three distinct pressure points converged at once. Each one amplified the others. The result? A market-wide breakdown that caught most investors off guard.
Let’s break down what actually happened and what comes next.
Total Market Cap Broke Critical Support
The total crypto market capitalization dropped to $2.28 trillion. That’s a clean break below the $2.30 trillion support level that held for weeks.
More concerning? The market also lost the $2.37 trillion range. This signals more than a temporary dip. It reflects genuine weakness in sentiment and capital flow.
So what does this mean? Markets that break support often test even lower levels. In this case, $2.22 trillion becomes the next logical target. That’s another $60 billion of potential losses if selling pressure continues.
Plus, the breakdown happened on increasing volume. That suggests real selling, not just lack of buyers. When support crumbles on high volume, it rarely reverses quickly.
However, one factor could change everything. If macro conditions improve or institutional money returns, the market could reclaim $2.37 trillion. That would invalidate the bearish setup and restore near-term bullish momentum.
Bitcoin Faces Persistent Outflows
Bitcoin trades at $67,367 right now. The world’s largest cryptocurrency failed to reclaim $70,000 despite multiple attempts.
The Chaikin Money Flow indicator tells the real story. It remains firmly below the zero line. That means capital keeps flowing out of Bitcoin across spot markets. This isn’t just weak buying. It’s active selling.
If outflows persist, Bitcoin faces a drop toward $62,893. That’s the next major support level traders are watching. A break below $65,000 would confirm the short-term bearish outlook and likely trigger stop-loss orders.
Yet Bitcoin has surprised markets before. A reversal in capital flows could push the price back toward $70,000. Breaking above that level would invalidate the immediate bearish thesis. From there, $72,294 becomes the next resistance zone.
The problem? No clear catalyst exists for such a reversal. Until that changes, pressure stays to the downside.
MYX Finance Crashed 38% Before Bouncing
MYX Finance plunged 38% in just 24 hours. The altcoin hit $3.41 before finding support and bouncing 10%.
This matched earlier bearish predictions almost perfectly. The sharp decline brought MYX close to its projected downside target. Then opportunistic buyers stepped in at discounted levels.
Now the question becomes whether this bounce has legs. If buying continues, MYX could reclaim $3.62 and potentially push toward $3.94 resistance. Breaking above the $4.00 psychological barrier would signal a genuine recovery attempt.
But here’s the risk. Another wave of market-wide selling would crush this nascent recovery. A drop below $3.26 would expose MYX to $2.88 support. Losing that level opens the path toward $2.48 and confirms the broader bearish outlook.
For now, MYX remains one of the most volatile altcoins. That creates both opportunity and risk depending on your timing and risk tolerance.
Positive News Couldn’t Stop the Bleeding
Interestingly, some genuinely bullish developments happened during this selloff. They just couldn’t overcome the broader market weakness.
Input Output CEO Charles Hoskinson announced that LayerZero will integrate with Cardano. This follows Citadel Securities’ investment in LayerZero and coincides with Midnight’s mainnet rollout. In normal conditions, that’s price-positive news.
The Stellar Development Foundation also announced TopNod’s integration with the Stellar network. TopNod brings key sharding technology and focuses on tokenized real-world assets. Another development that would typically boost sentiment.
Yet neither announcement stopped the selloff. That tells you something important. When fear dominates, even good news gets ignored. Markets focus on exits, not entries.
This dynamic often marks capitulation phases. Once the selling exhaustion completes, those same positive developments can fuel the next rally. But we’re not there yet.
What Traders Should Watch Next
The immediate path depends on whether $2.28 trillion holds as support. A bounce from here could push the total market cap back toward $2.37 trillion. That would represent a healthy recovery of recent losses.
For Bitcoin specifically, $65,000 remains the critical level. Holding above that keeps some short-term bullish potential alive. Breaking below it confirms the bearish case and opens $62,893 as the next target.
Also watch the Chaikin Money Flow indicator. If it crosses back above zero, that signals capital inflows are returning. That would mark a genuine shift in momentum worth paying attention to.
Altcoins like MYX will likely follow Bitcoin’s lead. But with added volatility in both directions. The tokens that recover fastest often become the next rally leaders. Just don’t mistake a bounce for a reversal without confirmation.
Most importantly, fear currently drives this market. Sentiment indicators remain deeply negative. Until that changes through time or price action, downside risk exceeds upside potential. Position accordingly.
The crypto market isn’t broken. It’s just resetting after an extended run. These corrections hurt. But they also create the foundation for the next bull phase. We’re just not there yet.