Is the Cryptocurrency Market Cap (TOTALCAP) Still Bullish?

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.

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.

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.

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.

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