The cryptocurrency market faced a significant downturn on January 27, with Bitcoin (BTC) dropping below $101,000, signaling a sharp correction in the sector. The global crypto market capitalization fell by 4.90% in 24 hours, landing at $3.45 trillion. Investors have been spooked by the heightened market volatility, as reflected in the Market Fear & Greed Index, which currently stands at 55 (Neutral).

Bitcoin, the most valuable cryptocurrency, registered a 24-hour dip of 4.17%, trading at $100,894.04. Despite the downturn, Bitcoin's resilience was evident as it hovered above critical support levels, such as the 50-day and 200-day exponential moving averages. Analysts suggest that a decisive break below the $100,700 mark could trigger deeper losses, while resistance near $107,200 might provide some relief for bullish investors.

Ethereum (ETH), the second-largest cryptocurrency, also saw a steep decline. It is currently priced at $3,165.55, marking a 24-hour drop of 5.72%. Ethereum's performance reflects cautious market sentiment, with traders monitoring key support levels amid fluctuating trading volumes.

Among altcoins, Solana (SOL) recorded one of the largest losses, plunging by 10.35% in the past 24 hours to trade at $232.53. Dogecoin (DOGE) also experienced a significant dip of 8.30%, with its price currently at $0.3273. Litecoin (LTC) and Ripple (XRP) followed suit, shedding 8.13% and 5.07% of their value, respectively.

On the brighter side, a few tokens managed to defy the bearish trend. Onyxcoin (ONYX) emerged as the top gainer, with a 24-hour jump of 10.01%. Jupiter (JUP) and AIOZ Network (AIOZ) also registered notable gains of 7.03% and 3.99%, respectively. However, Fartcoin (FARTCOIN) led the losers for the second consecutive day, plummeting by 29.81%.

Market analysts weighed in on the current scenario. Edul Patel, co-founder of Mudrex, noted that while Bitcoin remains resilient, bulls must defend the $100,700 support to avoid further corrections. CoinSwitch Markets Desk highlighted that the market is adjusting to geopolitical developments, including recent regulatory discussions in the U.S., which could impact sentiment.

In addition to technical factors, political developments have added to market uncertainty. Former U.S. President Donald Trump has announced a new crypto working group, which aims to draft regulations and establish a national cryptocurrency stockpile. While some view this as a stabilizing measure, others worry it could lead to increased governmental oversight.

The coming days will be critical for the cryptocurrency market as traders look for signs of recovery or further consolidation near key support levels.