• Bitcoin faces critical resistance as market dynamics hint at potential volatility ahead.
• Stablecoin dominance and fear indicators spotlight growing investor caution in the crypto market.

The cryptocurrency market is at a critical juncture as investors weigh the potential for a broader market correction. With Bitcoin[BTC] struggling to regain key support levels and altcoins showing signs of fatigue, concerns about a crypto crash are growing.

By examining critical market indicators and sentiment data, we can assess the likelihood of a downturn and identify possible scenarios.

Bitcoin’s price struggles to hold key levels

Bitcoin’s recent price action highlights the market’s fragility. AMBCrypto’s analysis shows that the cryptocurrency has slipped below the crucial $95,000 level, sparking fears of further downside. 

Despite maintaining support above the 200-day moving average, the Relative Strength Index (RSI) at 46.77 indicates waning momentum, teetering near the bearish territory. Failure to reclaim the $97,500 resistance could push Bitcoin into deeper correction territory.

Market cap trends signal consolidation

The total cryptocurrency market cap currently sits at $3.24 trillion, as shown in the Crypto Total Market Cap chart. Over the past 30 days, the market cap has declined by 3.24%, reflecting a market-wide consolidation phase. 

While Bitcoin remains a key player, Ethereum[ETH]  and altcoins have faced sharper declines, contrib

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Author: Adewale Olarinde