Cryptocurrency market cap rebounds after sharp fall
The total cryptocurrency market capitalization (TOTALCAP) has potentially bottomed out in the near term. This would confirm this with a break out of the current descending resistance line.
TOTALCAP in fall
The weekly chart shows that TOTALCAP has been declining since it hit an all-time high of $ 2.96 trillion (Tn) on November 10. The fall peaked with a low of $ 1.92 billion on December 4.
Then TOTALCAP bounced back, leaving a long lower bit 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 offer a neutral outlook.
The MACD, which is created by a short and long term moving average (MA), is falling but remains positive. This means that while short-term AD decelerates, it is always faster than long-term AD.
Likewise, the RSI is going down but is above 50. The RSI is an indicator of momentum, and movements above / below 50 are seen as signs of an uptrend / downtrend.
Cryptocurrency trader @AltstreetBet tweeted a TOTALCAP chart, indicating that an increase to $ 2.6 billion is expected.
The daily chart provides a more bullish outlook. This is visible from the bullish divergence of the RSI and MACD. This is an event that very often precedes uptrend reversals.
It is therefore possible that a bullish movement will follow.
Currently, there is resistance at $ 2.37 billion created by a descending resistance line and horizontal resistance zone.
If TOTALCAP is successful out of the resistance line, the next level of horizontal resistance would be $ 2.63.
The Altcoin Market Cap (ALTCAP) offers an almost identical outlook, with the same bullish divergence present in both the RSI and MACD.
The only exception is that ALTCAP has also been following an ascending support line since September 20. This therefore further strengthens the current level of support.
Therefore, the rate of increase is likely to accelerate once ALTCAP breaks out of the current short term descending resistance line (dotted line).
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