The crypto market opened down this morning after losing $2 billion yesterday and dropping back below the $135 billion level. After a strong rally last week, the market looked set to break through the significant $140 billion resistance level – but those hopes have now been quashed.

It’s the second time this year that the cryptocurrency market has tested $140 billion but with high volume and strong market sentiment, this rally looked hopeful. Over the past month, market leader Bitcoin (BTC) has attempted to break above $4,000 several times, but after a spike in volume and a period of high volatility yesterday, crypto’s golden boy dropped back down to around $3,900.

So what does this mean for the market going forward?

Despite many analysts predicting otherwise, it seems the bears are still in town and not looking to leave anytime soon. Every top ten cryptocurrency by market cap is in the red today, with most experiencing one to two percent losses. Bitcoin Cash (BCH) has been worst hit, down 4.5 percent, with EOS least affected at -0.5 percent.

While Bitcoin may have temporarily found support at $3,900, it’s not uncommon for assets to retest significant lows twice. With this being the third failure to break above $4,000, there is now a strong possibility of a drop to near $3,200 levels. Such a collapse could be significant, as investors have grown weary of a bear market that has extended for well over a year.

Ethereum (ETH) and XRP, the second and third crypto assets by market cap, are suffering similar struggles to maintain support. After finding support at $132 yesterday, ETH is now trying to break $134 while XRP is only just barely managing to remain above $0.30.

An argument for bulls

Not all analysts are pessimistic though, with Mati Greenspan from online trading platform eToro citing several reasons he believes Bitcoin will rally soon. With indications from federal reserve chairman Jerome Powell that the body is looking to ease quantitative tightening, Greenspan predicts this propping-up of the stock market could bleed off into the crypto sector too.

In an interview with Cointelegraph, he also cited low volatility and the high valuation of the upcoming ICE Bakkt platform as strong signs that investors have nothing to fear just yet.

In other news, cryptocurrency mining giant Bitmain’s initial public offering (IPO) has expired without being heard. The company has several faced internal issues and suffered significant losses since filing the IPO six months ago.