The crypto market is going through another weak phase. Prices are slowly moving down and confidence looks shaky. Total market value has fallen below three trillion again. This is the third time this month that this level has been tested. Many traders see this area as an important floor for the market.
Bitcoin is leading the move lower. Price slipped close to eight six thousand after a small recovery earlier. Ether also moved down after failing to hold recent gains. XRP tried to recover but selling pressure stopped the move near one point nine zero. These large coins are pulling the whole market lower.
The selling is mainly seen in large assets that are often used by big investors. This shows that institutions are reducing risk rather than small traders panicking. Earlier this year these same assets gained the most from strong inflows. Now they are feeling the most pressure as sentiment cools.
Bitcoin weakness stands out even more when compared to stock markets in Asia. Major Asian indexes showed small gains. These gains are linked to hopes of new government spending and support measures. While stocks react to future help the crypto market is reacting to caution.
The stronger dollar is also adding pressure. Recent job data showed the economy is still adding jobs. At the same time joblessness moved higher. This mix pushed the dollar up from recent lows. A strong dollar often makes it harder for Bitcoin and other assets priced in dollars to move higher.
Market mood has turned more negative. The fear and greed index is now deep in fear territory. This means traders are nervous and less willing to take risks. Earlier pullbacks this year were short and sharp. This one looks slower and more serious.
Several major coins have broken key support levels. This tells traders that the market structure is weakening. From a chart view the next support for Bitcoin sits near eight one thousand. This area lines up with earlier lows and past price balance zones.
If that level fails the next wide support area lies between six zero thousand and seven zero thousand. This zone has played a big role in past market cycles. It acted as resistance before and later became support. Traders will watch it closely if prices continue to fall.
Liquidity is also thin. As the year moves closer to the end many traders are closing positions. Leverage is low and trading depth is weaker. When liquidity drops even small trades can move price more than usual. This has made price swings feel sharper.
Trading activity remains quiet overall. Volumes are low compared to earlier in the year. This shows many participants are waiting rather than acting.
On chain data gives mixed signals. Some data suggests the recent Bitcoin rally may be tired. This opens the door to a deeper pullback before any new rise. At the same time long term buyers are still active.
Large firms and companies continue to add Bitcoin quietly. This shows belief in long term value even while short term price struggles. These buyers are not chasing fast moves. They are building positions slowly.
The market is now at a decision point. Holding the three trillion level could calm fears. Losing it could bring more weakness before balance returns.
