Total crypto market capitalization will continue to increase following the bullish pattern

Total crypto market capitalization (TOTALCAP) has increased since it created a bullish reversal pattern inside a strong support zone.

Similarly, Altcoin market cap (ALTCAP) has broken above the descending resistance line.

Double bottom

TOTALCAP has risen since it created a double bottom pattern inside the $ 310 billion support zone throughout September. At the time of writing it has just moved above the 0.618 Fib level of the entire down move.

Since this is a very common pullback for a correction, a breakout above this could mean the current rally is a new up move rather than a correction.

The technical indicators are on the rise, as all three indicators: MACD, RSI and Stochastic RSI are all rising, the latter has given a bullish sign.

If the limit continues to rise, the nearest resistance zone will be found at $ 390 billion, which coincides with August’s high.

The short-term chart shows a break above the descending resistance line (dashed line) and a flip of the previous resistance zone into support. Although this is a development in an uptrend, the technical indicators are declining, showing weakness in the form of a bearish divergence in the RSI and MACD.

This shows that the price can drop back to the nearest support zone at $ 346 billion. If the price holds above, then the possibility of further upside is very high.

The long term resistance of TOTALCAP

Trader AltcoinSherpa has outlined a chart of total market cap and predicted a rally in December.

The weekly chart also shows a flip of previous resistance into support.

Further, if the limit continues to rise, the next levels of resistance will be $ 425 and $ 617 billion, respectively.

Altcoin market cap

ALTCAP has similar price action to TOTALCAP, but it broke above the descending resistance line.

However, it is struggling to climb above the $ 144 billion zone, which is acting as resistance. A successful breakout is likely to result in a capitalization of $ 162 billion.

However, a fall to retest the previous resistance line and the $ 130 billion support zone before rising up appears to be the most likely scenario.

Dislaimer: This article is for information purposes only, not investment advice. We are not responsible for your investment decisions.

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