Major cryptocurrencies, including Bitcoin (BTC), Dogecoin (DOGE), Cardano (ADA), and Solana (SOL), dropped more than 5% in the past 24 hours as traders moved to secure gains following a robust week-long rally fueled by macroeconomic optimism.

The broader digital asset market, which had surged alongside global equities, showed signs of a potential pause as investors reassessed positions ahead of key events, including Coinbase's inclusion in the S&P 500 on May 19.

Let's check why crypto is going down today, what the technical analysis show and the newest crypto price predictions.

Bitcoin Is Going Down Today, $105K Stops Upward Momentum

Bitcoin, the largest cryptocurrency by market capitalization, fell 1.92% to $101,726.19, still holding above the $105,000 level it briefly surpassed earlier this week. Ethereum (ETH), the second-largest token, declined 2.48% to $2,531.68, struggling to stay above the $2,700 mark.

Other major tokens saw even steeper losses: Solana slid 5.58% to $169.38, Cardano dropped 6.10% to $0.7640, and Dogecoin fell 5.03% to $0.2232, according to price data from CoinMarketCap.

The pullback follows a rally driven by favorable macroeconomic developments, including lower-than-expected U.S. inflation figures, which bodes well for reduced pressure on the Federal Reserve to raise interest rates.

"We are in a highly volatile market where, despite the overall bullish sentiment, thin liquidity continues to amplify price movements. Even relatively small trading volumes can drive significant price changes. This also explains why higher-cap coins like BTC and ETH are less affected, while lower-liquidity assets experience more pronounced swings," Dr Kirill Kretov at CoinPanel, commented for FinanceMagnates.com

The Crypto Fear & Greed Index, a gauge of market sentiment, climbed to 74 yesterday, signaling potential overbought conditions, which may have prompted traders to lock in profits.

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The cryptocurrency market's recent surge was part of a broader upswing in risk assets, spurred by positive economic signals. U.S. inflation data released earlier this week came in below forecasts, raising expectations for continued monetary policy support, while China's tech sector reported robust earnings, fueled by optimism over renewed U.S.-China trade relations. These factors drove Bitcoin to a high of $104,000 and Etherum to $2,700 before both encountered resistance.

However, despite the current dip, institutional interest in cryptocurrencies remains strong. Data from Santiment, a blockchain analytics firm, showed that mid-sized Bitcoin holders, wallets holding between 10 and 10,000 BTC, accumulated over 83,000 BTC in the past month, signaling confidence in the asset's long-term value.

"In the current environment, price moves of up to 10% are well within normal volatility, and anything below 5% can often be considered just market noise," Kretov added. "Some of this movement likely comes from profit-taking, as traders secure gains after the recent rally. And with liquidity so thin, even modest sell-offs can quickly translate into noticeable corrections. This is typical behavior in a fragile market structure, where price reacts more to positioning flows than to fundamental developments.”

Coinbase S&P 500 inclusion is also a key event that market participants are closely following. The company's upcoming integration into the S&P 500 index, scheduled for May 19, is expected to drive significant passive fund flows into Coinbase stock, with some analysts anticipating demand exceeding $9 billion.

The inclusion of a major cryptocurrency exchange in one of the world's most observed equity indices marks a substantial step toward mainstream acceptance of the digital asset industry and could potentially attract new institutional capital to the sector.

Bitcoin Technical Analysis Shows Strong Support

From the perspective of my technical analysis, Bitcoin has stalled at the psychological level of $105,000, which aligns with the peak from late January. However, the correction has not broken out of the steeply inclined regression channel that has been forming since the April lows.

Moreover, Bitcoin has technical support at the psychological $100,000 level, which should provide significant support for a rebound. If this level fails to hold, I identify the next key support zone at $90,000-$92,000, corresponding to the lows from the turn of December, January, and February.