Bitcoin and Crypto Market Cap Experience Volatility on November 16, Synthetix (SNX) Breaks Long-Term Resistance
Crypto News – On November 16, the total cryptocurrency market capitalization, represented by TOTALCAP, surged to a new yearly peak of $1.43 trillion. This milestone was attained at the formidable resistance level of $1.43 trillion, which corresponds to the 1.61 external Fibonacci retracement of the prior decline.
Following this peak, TOTALCAP experienced a significant downturn, manifesting a bearish candlestick pattern. This downturn was accompanied by the confirmation of a bearish divergence (depicted in green) in the daily Relative Strength Index (RSI).
Market participants often employ the RSI as a momentum indicator to ascertain potential overbought or oversold conditions and to inform their decisions regarding asset accumulation or liquidation.
A bearish divergence materializes when a decrease in momentum coincides with an increase in price. This phenomenon frequently foreshadows impending reversals in bearish trends, which was indeed the case with TOTALCAP.
In the event that the downward trajectory persists, TOTALCAP may experience an 11% decline, finding support at the nearest horizontal level of $1.23 trillion. However, it’s worth noting that an upward surge beyond the $1.43 trillion high could potentially trigger a substantial 24% upward move toward the subsequent resistance level at $1.72 trillion.
Bitcoin Rebounds from Support
On November 16, the price of Bitcoin (BTC) witnessed a decline, coming close to establishing a new yearly high. Nevertheless, BTC managed to remain above the critical horizontal support zone at $36,000. This support level is defined by the 1.61 external Fibonacci retracement of the preceding decline, and BTC successfully validated it as a support level (as indicated by the green icon), subsequently experiencing a rebound.
If the ongoing upward momentum persists, BTC could potentially register a 15% increase, aiming for the 2.61 external Fibonacci retracement level at $42,800.
However, it’s imperative to acknowledge that a breach below the $36,000 threshold would negate the rebound scenario, potentially leading to an 18% downturn with the next support level standing at $31,000.
Synthetix Surges as it Breaks Long-Term Resistance
The price of Synthetix (SNX) has exhibited rapid growth since the commencement of October. After a series of five consecutive bullish weekly candlesticks, SNX finally managed to break free from the confines of a long-standing horizontal resistance area at $3.20. Remarkably, this resistance zone had remained unbroken for an impressive 450 days.
Throughout this extended period, SNX adhered to an ascending support trend line, which, when combined with the aforementioned resistance, formed an ascending triangle pattern—an indicator of bullish sentiment in the market.
Should SNX manage to traverse the full height of this pattern, it could ascend to the subsequent resistance level at $5.20, translating to a substantial 40% increase from its current valuation.
Nonetheless, it’s essential to acknowledge that a closure beneath the $3.20 horizontal zone would nullify the breakout scenario, potentially resulting in a 45% decrease with SNX retracing to the ascending support trend line at $2.