BTC, ETH, TotalCap support levels
- Bitcoin (BTC), Ethereum (ETH) and the Crypto Market Cap (TotalCap) have been displaying their usual correlation in market structure.
- Their July highs correlate on July 13.
- They all suffered breakdowns on August 17.
- Neither have broken their respective resistance levels.
Crypto Market Cap (TotalCap): So Close and Yet, So Far
After the July high of $1.23 trillion, the TotalCap price suffered a breakdown on August 17 to the new minor support area at $1.01 trillion. There was a significant price increase, reaching so close to the descending (semi-dynamic) resistance (white) line, but it was rejected, causing a decline to the same support area.
The price is stalling at that support area due to indecision between the buyers and sellers. Some would expect the price to reject the support area and bounce back up, while others expect the support area to be invalidated very soon.
A breakout from the support area would indicate a potential reversal of the current uptrend since the previous low also rests on that area and possibly causes a 15.7% drop to the lower support at $845 billion. If the market respects and bounces off the support zone, we could witness a 5.54% increase towards the descending resistance. A break of the descending resistance and the subsequent horizontal resistance could further signal a trend continuation.
Can Bitcoin (BTC) Clear Resistance?
Similarly, BTC had a drop from its descending resistance on August 17 and reached the support at $25713.
Although there was a significant increase [spike] in price on August 29, the market failed to break the descending resistance, reacted to it and sat back at the support area. A break below the support, which is also the previous low of the uptrend, could indicate a potential reversal and send the price spiralling down, perhaps by 21.3%, till it reaches the lower support at $19947. However, a significant bounce of the support area towards the descending resistance could catch buyers’ interest, causing them to look out for a break above it. If the price breaks that resistance, our expected market movement is portrayed in blue.
Ethereum (ETH) Might Follow the Same Path
ETH also displays a somewhat similar structure to TotalCap and BTC. On August 17, the price dropped from the descending resistance to a support area at $1651.1 and is currently stalling (and trading) at that position.
A break below the support area and a previous low (creating a lower low) could indicate bearish potential and cause a drop by about 13.8%, with the price reaching the next support zone. However, if the price bounces and breaks above the descending resistance, it would signal a bullish potential and cause buyers to push harder until a higher high is created.
The cumulative presence of indecision in BTC, ETH TotalCap support levels pairs seems to have caused low volatility in crypto markets in general, and this indecision has bred little anxiety in the community. Still, as it always is with crypto or any other market, one solid move is enough to renew the spark and cause massive involvement. We will keep our eyes open.
Featured image: Shutterstock
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Dominic Jubemi is primarily into legal practice. However, he has taken interest in building and grooming fundamental skills in FX and Crypto trading, audio engineering and in the nearest future, fiction writing.