Gate News, March 23 — The cryptocurrency market continues its downward trend, with the total market capitalization falling back to approximately $2.32 trillion. It has failed to regain the key resistance level for several consecutive trading days, indicating that sellers still dominate. This correction has wiped out most of the gains since early March, and market sentiment has noticeably weakened.
On the macro front, escalating tensions in the Middle East have become the main disturbance. As the US-Iran conflict enters its fourth week, risks related to the Strait of Hormuz continue to intensify. Coupled with rising energy and inflation expectations, Asian stock markets are also under pressure. Major indices in Japan, South Korea, and Australia generally declined, with risk assets experiencing capital outflows, and the crypto market being affected as well.
Structurally, after breaking below the $2.37 trillion support level, this position has now turned into resistance. If the market cannot stabilize above this level, it may further decline toward the $2.25 trillion area. In the short term, $2.32 trillion remains a key support; if it is lost, further downside could open up.
Bitcoin’s price is also under pressure. Currently around $68,175, it has broken below the critical support level of $68,665 — the first time since March that this level has been breached. The Money Flow Index (MFI) has fallen from high levels to 68.90, indicating weakening buying momentum. If the decline continues, the next target could be $65,776, with a possible test of the $64,043 zone.
On the potential rebound front, if Bitcoin reclaims the $68,665 level, it could ease short-term pressure and set the stage for challenging $70,552. However, until the key zone is recovered, the market structure remains bearish.
Under the influence of macro uncertainties and technical resonance, short-term volatility in the crypto market is intensifying. Capital is becoming more cautious, and the battle for key support levels will determine the next phase direction.
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