Bitcoin and Crypto Market at Crucial Turning Points, Synthetix (SNX) Faces Volatility After New Yearly High
Crypto News – Since November 9th, TOTALCAP has been trading within a range of $1.32 trillion to $1.40 trillion. Recently, it experienced a dip to the lower end of this range but quickly rebounded (indicated by the green icon), almost pushing it to a new yearly high (indicated by the red icon).
If TOTALCAP manages to break out of this range, it could potentially surge by approximately 7%, aiming for the next resistance level at $1.48 trillion. This resistance is determined by the 1.61 external Fibonacci retracement of the previous decline. However, if there’s a rejection at the range high, a 5% decline to the $1.32 trillion support area is possible.
Bitcoin Trades in a Neutral Pattern
BTC’s price has been confined within a symmetrical triangle pattern since November 7th. Symmetrical triangles are generally neutral patterns that often result in the continuation of the previous trend.
Considering that this triangle pattern follows an upward trend, a breakout appears to be the most likely scenario, especially given the three previous breakout attempts (indicated by the red icons). In the event of a breakout, BTC could see a 10% increase, targeting the next resistance level near $41,500, determined by projecting the triangle’s height to the breakout level (indicated by the black arrow).
However, in the case of a rejection at the triangle’s resistance trend line, a 4% drop to the support trend line at $36,300 is a potential downside scenario.
SNX Declines After Hitting Yearly High
SNX’s price has been following an ascending support trend line throughout the year, with a notable acceleration since bouncing off this trend line on October 13th. On November 19th, SNX broke through a 457-day horizontal resistance at $3.20, reaching a new yearly high of $3.81.
However, the price couldn’t sustain this upward momentum and formed a significant upper wick (indicated by the red icon), retracing back to the $3.20 range.
If SNX manages to bounce from this level, there’s potential for a 30% increase toward the next resistance at $4.40. Conversely, a close below $3.20 could trigger a 40% decline towards the ascending support trend line at $2.
In summary, BTC and TOTALCAP are approaching critical levels, while SNX faces volatility after reaching a new yearly high.
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