The crypto market kicked off Thursday under pressure, with Bitcoin ($BTC ) and the broader market showing renewed weakness. This bearish momentum has spilled into altcoins, keeping overall sentiment cautious.
🔸 Crypto Market Cap Pulls Back
The total crypto market cap (TOTAL) dropped by $44 billion, currently sitting around $2.95 trillion. While the decline looks heavy on the surface, market structure is beginning to stabilize.
Selling pressure has eased after a bearish weekend, giving digital assets room for a short-term bounce. However, direction remains unclear.
On the macro side, the Federal Reserve held interest rates at 3.50–3.75% during its January 28 policy meeting, the first of 2026. The stance was largely neutral, easing fears of an aggressive tightening pivot. Despite this, crypto has yet to respond decisively.
For now, $3.00 trillion remains the key psychological and technical barrier. A recovery is still possible if sentiment improves and macro conditions align. A coordinated move higher could push TOTAL back toward the $3T level in the coming days.
🔸 Bitcoin Fails to Break Higher — Again
Bitcoin is trading near $88,127, after a sharp rejection on Wednesday halted its attempt to reclaim $90,000. The rejection highlights elevated volatility and persistent caution across the market.
BTC is now hovering near a critical technical zone that could define its next major move.
If bearish momentum strengthens, Bitcoin could slide toward $86,987, the 23.6% Fibonacci retracement level — a key area often referred to as bear market support. This zone has so far prevented BTC from breaking below the $86,558 support.
That said, a bullish reversal is still on the table. If buyers regain control and push price back above resistance, reclaiming $90,000 would invalidate the bearish setup. A successful breakout could open the door for a move toward $90,914 and beyond.
🔍 Final Take
The market is in a wait-and-react phase. Selling pressure is cooling, but conviction is still missing. Bitcoin’s next move — whether a breakdown or a breakout — will likely set the tone for the entire crypto market.
Volatility remains high. Direction comes next.
