The total cryptocurrency market cap (TOTALCAP) has potentially made a short-term bottom. It would confirm this with a breakout from the current descending resistance line.
TOTALCAP falling
The weekly chart shows that TOTALCAP has been falling since reaching an all-time high of $2.96 Trillion (Tn) on Nov 10. The fall culminated with a low of $1.92 Tn on Dec 4.
Afterwards, TOTALCAP bounced, leaving a long lower wick in place.
More importantly, the wick was created inside the $1.85 – $2.07 Tn support area, created by the 0.5-0.618 Fib retracement support level.
However, technical indicators provide a neutral outlook.
The MACD, which is created by a short- and a long-term moving average (MA) is falling but is still positive. This means that while the short-term MA is deaccelerating, it is still faster than the long-term one.
Similarly, the RSI is falling but is above 50. The RSI is a momentum indicator, and movements above/below 50 are considered signs of a bullish/bearish trend.
Short-term bounce
Cryptocurrency trader @AltstreetBet tweeted a TOTALCAP chart, stating that an increase towards $2.6 Tn is expected.
The daily chart does provide a more bullish outlook. This is noticeable from the bullish divergence in both the RSI and MACD. This is an occurrence that very often precedes bullish trend reversals.
Therefore, it is possible that an upward movement will follow.
Currently, there is resistance at $2.37 Tn, created by a descending resistance line and horizontal resistance area.
If TOTALCAP is successful in breaking out from the resistance line, the next horizontal resistance level would be at $2.63.
ALTCAP movement
The Altcoin market cap (ALTCAP) provides an nearly identical outlook, with the same bullish divergence present in both the RSI and MACD.
The only exception is that ALTCAP is also following an ascending support line since Sept 20. So, this further strengthens the current support level.
Therefore, the rate of increase is likely to accelerate once ALTCAP breaks out from the current short-term descending resistance line (dashed).
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here
Disclaimer
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Leave a Reply