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Is the Cryptocurrency Market Cap (TOTALCAP) Still Bullish?

2 mins
Updated by Dani Polo
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In Brief

  • The total cryptocurrency market cap has created a double bottom pattern.
  • There is support and resistance at $300 billion and $425 billion, respectively.
  • The Altcoin market cap is more bullish than the total market cap.
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The Total Cryptocurrency Market Cap (TOTALCAP) is in the process of re-testing a resistance area it has broken out from.
If the area holds, the TOTALCAP should continue moving upwards. The Altcoin Market Cap (ALTCAP) has a very similar price action.

Totalcap

TOTALCAP has been increasing since reaching a bottom on March 13. The upward move continued until it reached a high of $383 billion on Aug 17. The cap has been falling since, dropping to the support area at ~$300 billion. Inside this support area, a double bottom has been created, which is a bullish reversal pattern. Furthermore, all three indicators (MACD, RSI, and Stochastic Oscillator) are increasing, the latter having made a bullish cross. All these suggest that an upward move is likely to follow, unless the support area breaks down.
Total Cryptocap Movement
CRYPTOCAP Chart By TradingView
Cryptocurrency trader @TheEuroSniper stated that the total cryptocurrency market cap is at a decision point since it has fallen below the previous range low. A reclaim of the range would indicate that the cap is going to rally.
Crypto Market Cap
Source: Twitter
However, a look at the weekly time-frame reveals that TOTALCAP has not actually fallen below the top of the range. If closing prices are used, the current decline is a re-test of the previous resistance area, common before the price moves higher. In addition, several weekly closes in July/Aug 2020 were higher than those in July 2019, when a long upper wick was created, followed by a decline. Technical indicators do not yet show any weakness. If TOTALCAP continues increasing, the next resistance area would be found at $425 billion, the 0.5 Fib level of the entire previous fall.
TOTALCAP Movement
CRYPTOCAP Chart By TradingView

Altcoin Market Cap

The Altcoin Market Cap (ALTCAP) has a similar price action relative to the TOTALCAP but is slightly more bullish. ALTCAP has already broken out from a descending resistance line and is moving higher. Technical indicators are almost identical, with all three indicators (MACD, RSI, and Stochastic Oscillator) increasing, the latter having made a bullish cross and the RSI being above 50. Therefore, we would expect ALTCAP to continue moving upwards.
ALTCAP Movement
ALTCAP Chart By TradingView
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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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