The Bitcoin (BTC) price broke down from an ascending support line while the Crypto Market Cap (TOTALCAP) is close to doing so. MultiversX (EGLD) is invalidating a previous breakout.
In the news today:
TOTALCAP Returns to Support
The cryptocurrency market cap has increased alongside an ascending support trend line since October 2023. Recently, it bounced at the trend line on December 18 (green icon) and began an upward movement.
The bounce led to a new yearly high of $1.73 trillion on January 2, causing a breakout from a critical horizontal and Fib resistance area at $1.60 trillion.
However, TOTALCAP fell sharply yesterday and returned to the $1.60 trillion area and the support trend line again. Whether it bounces or breaks down will likely determine the future trend.
The RSI is a momentum indicator traders use to evaluate whether a market is overbought or oversold and whether to accumulate or sell an asset. Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite.
The RSI readings are mixed since the indicator is decreasing but has generated a hidden bullish divergence (green).
A strong bounce can lead to a 16% increase to the next resistance at $1.87 trillion, while a breakdown could cause a 10% drop to the 0.382 Fib retracement support at $1.45 trillion. This will also confirm the breakdown from the ascending support trend line.
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Bitcoin Breaks Down Below Support Trend Line
Like TOTALCAP, the BTC price has increased alongside an ascending support trend line since October. However, Bitcoin broke down from the ascending support trend line on December 28 and validated it as resistance on January 2 (red icon).
BTC has fallen since but still trades above the long-term 0.5 Fib retracement region at $42,300. This is also a horizontal support area.
Also, in a similar fashion to TOTALCAP, the daily RSI is falling but has generated a hidden bullish divergence. Whether the BTC price bounces or breaks down below $42,300 can determine the future trend.
A successful BTC bounce can lead to a 16% increase to the next resistance at $50,500. On the other hand, a breakdown can trigger a 20% drop to the 0.5 Fib retracement support level at $36,300.
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EGLD Falls After Breakout
The EGLD price has increased since breaking out from a descending resistance trend line in October. EGLD reclaimed two horizontal areas at $43 and $63 during the upward trend. This led to a high of $78.10 last week.
However, EGLD fell yesterday and decreased below the $63 horizontal area. This suggests that the previous breakout was only a deviation.
If the downward movement continues, EGLD can fall by another 27% and reach the $43 support area.
Despite the bearish EGLD price prediction, reclaiming the $63 area can trigger a 120% increase to the next resistance at $130.
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