The crypto market is down today, even though there are no clear reasons why. The Bitcoin (BTC) price was rejected by the resistance line of a corrective pattern. Curve DAO Token (CRV) and Dogecoin (DOGE) are the biggest losers since yesterday.
The most interesting crypto market news from Dec. 1 was a report from the Wall Street Journal, which said that rising Tether loans present a risk to the cryptocurrency industry. However, Tether hit back, stating that their loans are heavily collateralized and do not present any threat to the cryptocurrency market.
Crypto Market Is Down by 1.5%
The total crypto market cap (TOTALCAP) went down by 1.5% on Dec. 1. The rejection occurred very close to the long-term $830 billion resistance area. The area previously acted as support throughout June-July (green icons) and has now turned to resistance. In order for the trend to be considered bullish, it is crucial that the crypto market cap reclaims it.
The ongoing increase was preceded by a double bottom pattern and bullish divergence in the RSI (green line). However, the latter has yet to move above 50, which would confirm the bullish trend.
As a result, the cryptocurrency market cap has to reclaim the $830 billion level and the RSI has to move above 50 for the trend to be bullish.
Bitcoin Price Prediction: Bear Market Still Intact
The technical analysis from the short-term two-hour time frame provides a bearish Bitcoin price forecast. The digital asset has been increasing in a corrective channel since Nov. 21. It fell over the past 24 hours, once it was rejected by the resistance line of the channel (red icon).
Additionally, the price of Bitcoin fell below the $17,050 resistance area. Finally, the movement inside the channel looks like an A-B-C corrective structure, in which waves A:C have a 1:1 ratio.
Therefore, the trend is considered bearish until the Bitcoin price breaks out from the channel.
CRV and DOGE Lead Crypto Market Losers
The CRV price decreased underneath a descending resistance line since July 28. The line caused a rejection on Nov. 5 and led to a sharp fall, culminating with a minimum price of $0.40 on Nov. 22.
However, CRV bounced afterward and reclaimed the $0.56 horizontal support area. The direction of the trend will be determined by whether the CRV price breaks down from the $0.56 support area or breaks out from the resistance line instead.
Unlike the Bitcoin price, the Dogecoin price broke out from an ascending parallel channel on Nov. 26. However, it decreased afterward, preceded by bearish divergence in the two-hour RSI (green line).
Then, Dogecoin bounced at the resistance line of the channel, possibly validating it as support (green icon).
Whether it falls back inside the channel or not will likely determine the future DOGE price prediction.
For BeInCrypto’s latest crypto market analysis, click here.
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