Crypto Market Analysis: BTC and TOTALCAP Prices Drop Post-November Highs, BLUR Faces Bearish Divergence

Crypto Market Analysis: BTC and TOTALCAP Prices Drop Post-November Highs, BLUR Faces Bearish Divergence

Crypto News – The Total Cryptocurrency Market Cap (TOTALCAP) has embarked on a downward trajectory following its recent peak. Starting November 7, TOTALCAP embarked on an upward journey within an ascending parallel channel, culminating in a new annual zenith of $1.42 trillion on November 24. However, this high was short-lived as TOTALCAP faced a rejection at the resistance trend line of this channel, marked by a noticeable red icon, initiating a subsequent decline.

Yesterday, TOTALCAP dipped below the midline of the channel, which stands at $1.38 trillion, signaling a bearish sentiment. This downturn is further accentuated by a shift in the six-hour Relative Strength Index (RSI), a key momentum indicator that helps traders gauge market conditions, signaling overbought or oversold territories. The RSI reading below 50, which is currently the case, suggests a potential decline. If this trend persists, TOTALCAP could see a further reduction of about 3%, potentially reaching the channel’s support trend line at $1.33 trillion.

Conversely, if there’s a rebound above the channel’s midline, TOTALCAP might experience an upsurge of about 8%, aiming for the next resistance level at $1.47 trillion, potentially marking a channel breakout.

Bitcoin’s Struggle to Sustain Uptrend

Bitcoin (BTC) has been charting a course along an ascending support trend line since November 6. It has, however, been met with resistance at the $38,000 mark. These dynamics have formed an ascending triangle pattern.

On November 24, after two unsuccessful efforts, BTC briefly surpassed the $38,000 resistance, marking a new yearly high at $38,437. Yet, this breakthrough was not sustained, as the price fell back below the triangle’s resistance line (indicated by a red icon).

Mirroring TOTALCAP, Bitcoin’s six-hour RSI has also dropped below 50, indicating a trend that’s yet to be determined. Should the decline continue, BTC might see a further dip of about 2%, possibly reaching the triangle’s ascending support line at $36,300.

Despite this bearish outlook, a breakout from the triangle could propel BTC upwards by 12%, targeting the next resistance level at $41,000. This projection is based on the height of the triangle extended from the point of breakout.

BLUR’s Price Retreat Following Divergence

BLUR has experienced a significant surge following its breakout from a descending resistance trend line on October 18, reaching a high of $0.69 on November 24. Post this high, BLUR’s price has been on a decline, which was preempted by a bearish divergence in the RSI, indicated by a green line. Such a divergence occurs when a price increase is accompanied by a decline in momentum.

Should this downward trend continue, BLUR may see a reduction of up to 20%, potentially dropping to the nearest support level at $0.40.

However, in the event of an abrupt trend reversal, BLUR could witness a substantial increase of up to 60%, possibly challenging the next resistance near $0.80.