The Crypto Market Cap: Key Points
- The total market capitalization of the crypto market fell sharply last week and is now slightly above a key support level.
- The price action does not indicate any bullish signs, but the RSI suggests a potential 50% increase.
- Total market capitalization has been decreasing since July, after reaching a high of $1.24 trillion and failing to break out.
- There has been an increase in “buy the dip” mentions on social media platforms during the market decrease.
- The weekly RSI is bearish, indicating a potential bearish trend.
Will Crypto Total Market Capitalization Recover Because of RSI?
- The daily RSI has fallen into oversold territory for the third time this year.
- Previous instances of oversold RSI led to 40% and 50% increases in total market capitalization.
- The MVRV indicator and net losses for Bitcoin suggest that most losses have already been realized.
- The total market capitalization trend is considered bullish as long as a weekly close below $1 trillion does not occur.
Hot Take: The Crypto Market Cap’s Potential Recovery
Overall, while the current price action does not indicate bullish signs, the RSI and historical data suggest that there is potential for a recovery in the total market capitalization of the crypto market. The market still trades above a key support level, and if it does not close below it, there is a possibility of a 15% bounce back. Additionally, the oversold RSI and previous instances of recovery indicate a potential 50% increase in the next two months. However, a weekly close below $1 trillion could result in a 13% decrease. Therefore, it is crucial to monitor the market closely and consider these factors when making investment decisions.
By
By
By
By
By