The crypto market cap (TOTALCAP) broke out from a descending resistance trendline, while the Bitcoin (BTC) price was rejected by one. Compound (COMP) has increased since its double bottom pattern.
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Crypto Market Cap (TOTALCAP) Retest Resistance Trendline After Breakout
TOTALCAP experienced a declining trend starting from July 13, hitting a low point of $978 billion on September 11.
Following that, TOTALCAP began to move upwards and found support at the $1 trillion mark. This upward movement coincided with a bullish divergence in the daily RSI (green line), where decreasing prices were accompanied by increasing momentum, often indicating the potential for a significant upward move.
On September 18, the price successfully broke free from the downward resistance trendline.
However, maintaining this upward momentum has been challenging, with the price slipping below its levels before the breakout. On September 26, TOTALCAP rebounded at the previously declining resistance trendline, establishing it as a new support level, which is a typical occurrence after a breakout.
If TOTALCAP continues its previous pattern, it could potentially increase by 10%, reaching the resistance level of $1.12 trillion. Conversely, a 3% decline would be needed to bring the price down to the $1 trillion support level.
Bitcoin (BTC) Price Falls After Rejection
The BTC price has fallen under a descending resistance trendline since July 13. The decrease culminated with a low of $14,901 on September 11. The price has increased since, in a movement that was preceded by a bullish divergence in the RSI (green line).
Despite the divergence, BTC failed to break out from the descending resistance trendline. Rather, it was rejected by it on September 19 (red icon).
If the BTC price breaks out, it can increase by 10% and reach the next resistance at $29,200. On the other hand, continuing the rejection can lead to a 3% drop to the closest support at $25,600.
Compound (COMP) Increases After Bullish Pattern
The COMP price created a double bottom pattern on August 17 and September 11. The double bottom is considered a bullish pattern, meaning it usually leads to breakouts.
The Compound price has increased since the second bottom. On September 24, it broke out from its descending resistance trendline, indicating that the trend is bullish.
If the increase continues, COMP can reach the next resistance at $55, 25% above the current price. On the other hand, failure to sustain the upward movement can lead to a 20% drop to $35.
For BeInCrypto’s latest crypto market analysis, click here.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
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