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The Total Cryptocurrency Market Cap (TOTALCAP) has been increasing since it created a bullish reversal pattern inside a significant support level.
Similarly, the Altcoin Market Cap (ALTCAP) has broken out from a descending resistance line.
Double Bottom
TOTALCAP has been increasing since it created a double bottom pattern inside the $310 billion support area throughout September. At the time of writing, it has just moved above the 0.618 Fib level of the entire downward move.
Since this is a very common retracement level for corrections, a continued rally above would likely mean that the current increase is a new upward move rather than a correction.
Technical indicators are bullish, since all three of the: MACD, RSI, and Stochastic Oscillator are increasing, the latter having made a bullish cross.
If the cap continues rallying, the closest resistance area would be found at $390 billion, coinciding with the August highs.
The shorter-term chart shows a breakout above a descending resistance line (dashed) and a re-test of the previous resistance area as support. While this is a bullish development, technical indicators are bearish, showing weakness in the form of bearish divergence in the RSI and MACD.
This indicates that a decline towards the closest support area at $346 billion could occur. If the price manages to hold above, the possibility of upwards continuation is high.
TOTALCAP’s Long-Term Resistance
Cryptocurrency trader @AltcoinSherpa outlined a total market cap chart that predicts a rally in the month of Dec.
The weekly chart shows a similar re-test of the previous resistance area as support.
Furthermore, if the cap continues increasing, the next resistance levels would be $425 and $617 billion, respectively.
Altcoin Market Cap
The ALTCAP has similar price action to the TOTALCAP, but it has already broken out from a descending resistance line.
However, it’s struggling to move above the $144 billion area, which is acting as resistance. A successful breakout would likely lead the cap towards $162 billion.
However, a fall to re-test the previous resistance line and the $130 billion support area before moving upwards seems the more probable movement.
Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.