A crypto market crash is happening today, January 25, with Bitcoin and most altcoins being in the deep red. Bitcoin plunged below $88,000, while Ethereum dropped to $2,800. The market capitalization of all tokens moved below the key support level of $3 trillion, while the CoinMarketCap 20 Index dropped by over 2.2% in the last 24 hours and by 10% in the last seven days. One main reason why the crypto market crash is happening is that Bitcoin price has formed a series of bearish chart patterns on the daily and weekly charts.
For example, the daily timeframe chart shows that the coin has remained below the Supertrend indicator and the 50-day Exponential Moving Average (EMA). Bitcoin price has also formed the risky bearish flag pattern, which is made up of a vertical line and an ascending channel. It is now attempting to move below the lower side of the flag, pointing to more downside, potentially to the November low of $80,400. A drop below that level will point to more downside, potentially to the April low of $74,000.
The Crypto Fear and Greed Index moved to the fear zone. The crypto market crash is also happening as the Federal Reserve will maintain a hawkish tone this year after the strong macro data from the United States. Data released last week showed that the economy continued growing in the third quarter and analysts believe that it grew by 5% in the fourth quarter. More data showed that the labor market improved, while inflation has stabilized.
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