Why Is the Crypto Market Up Today?

3 February 2023, 09:00 GMT+0000
Updated by Geraint Price
3 February 2023, 09:00 GMT+0000
In Brief
  • The Crypto Market Cap (TOTALCAP) increased considerably on Feb. 1.
  • Bitcoin (BTC) is attempting to break out from an ascending parallel channel
  • Terra Classic (LUNC) broke out from a horizontal resistance area.
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The Total Crypto Market Cap (TOTALCAP) and the Bitcoin (BTC) price were rejected by ascending parallel channels. Terra Classic (LUNC) broke out above the $0.00019 resistance area.

In crypto news, MetaMask announced new features on its wallet extension, such as phishing detection, showing balance token price and incoming transactions.

The Fantom price is in a massive upward movement, and the Yearn Finance founder tweeted 13 reasons why he is bullish on Fantom.

Finally, analysts are suggesting that the Bitcoin (BTC) price has begun a new bull market phase.

TOTALCAP Gets Rejected by Channel Resistance Line

The crypto market cap (TOTALCAP) has traded in an ascending parallel channel since Jan. 23. Such channels are considered bearish patterns, meaning that they lead to breakdowns most of the time.

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On Jan. 29, the price was rejected by the channel’s resistance line and fell to its support line. However, it began another upward movement on Jan. 20 and is making another attempt at breaking out (red icon). Whether the price breaks out or gets rejected will likely determine the direction of the future trend.

A breakout could take TOTALCAP to the next resistance at $1.14 trillion. On the other hand, a breakdown from the channel would lead to a drop to the 0.382 Fib retracement support level at $935 billion. If TOTALCAP falls below the channel’s midline, a breakdown would become more likely.

Crypto Market Cap (TOTALCAP) Channel Movement
TOTALCAP/USDT Six-Hour Chart. Source: TradingView

Bitcoin Also Fails to Break Out

Similar to the crypto market cap, the Bitcoin price has traded in an ascending parallel channel since Jan. 23. On Jan. 30, it saved a breakdown by bouncing at its support line. On Feb. 2, it began an upward movement and is now trading close to the channel’s resistance line.

However, the Bitcoin price was rejected by the resistance line and created a bearish candlestick (red icon) on Feb. 2. It is now at risk of falling below the channel’s midline.

If the Bitcoin price breaks out, it could increase toward $26,000. On the other hand, a breakdown from the channel could cause a fall toward the 0.382 Fib retracement support level at $21,200.

Bitcoin (BTC) Channel Movement
BTC/USD Six-Hour Chart. Source: TradingView

LUNC Clears Resistance

The LUNC price has increased since Dec. 16. The upward movement caused a breakout from the $0.00019 resistance area on Feb. 3. If the upward movement continues, the next resistance would be at $0.00026. 

On the other hand, a close below the $0.00019 area could lead to a fall toward the $0.00014 horizontal support area.

Terra Classic (LUNC) Price Breakout
LUNC/USDT Daily Chart. Source: TradingView

For BeInCrypto’s latest crypto market analysis, click here.

Disclaimer

BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.