TOTALCAP Trades Inside Channel
The cryptocurrency market cap has been trading within an ascending parallel channel since December 2023. These channels often indicate corrective movements. On January 11, the channel’s resistance trend line rejected the price, causing a decline. Currently, the market cap is near its support trend line.
This support trend line coincides with a long-term horizontal and Fibonacci support level at $1.61 trillion, which is now acting as a support zone. Whether TOTALCAP breaks below this level or bounces back will determine the future direction of the trend.
Bitcoin Breaks Down From Channel
Similar to TOTALCAP, the price of Bitcoin has been trading within an ascending parallel channel since December. However, on January 12, BTC broke out from the channel, indicating that the upward movement has ended. Currently, Bitcoin is trading below the channel’s support trend line, which could now act as resistance. The overall trend is bearish until Bitcoin reclaims the support trend line.
In terms of price prediction, if BTC fails to reclaim the support trend line, it could see a 12% decrease to the nearest support at $37,700. However, reclaiming the support trend line would signal a reversal and potentially lead to a 13% increase to the channel’s resistance trend line at $48,250.
RUNE’s Gradual Decrease Continues
The price of THORChain (RUNE) has been falling under a descending resistance trend line since December 4, 2023. This trend line has been validated multiple times, most recently on January 11, which caused a rejection and accelerated the downward movement. RUNE also broke below the $5.20 horizontal support area during this drop, forming a bearish descending triangle pattern.
If the price continues to descend and reaches the height of the triangle, it could experience a 30% drop to the next support level at $2.90. However, if RUNE breaks out above the resistance trend line, it would indicate a bullish trend and could lead to a 40% increase to the next resistance level at $6.
Hot Take: Cryptocurrency Market Shows Signs of Corrective Movements
The recent price movements in the cryptocurrency market suggest that corrective movements are taking place. Both TOTALCAP and Bitcoin have broken out of their respective ascending parallel channels, indicating potential bearish trends. Additionally, THORChain (RUNE) has been experiencing a gradual decrease under a descending resistance trend line.
While these patterns suggest downward movements in the short term, it’s important to note that market conditions can change quickly. Always conduct your own research and seek professional advice before making any financial decisions.
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